19/08/2006
Al-Alam Alyom Newspaper 2006/AUGUST /19
Investment in Egypt is currently facing a real crisis due to the national debt’s internal domination, whereby the alarm has sounded as a warning that our economy is approaching the red line. In light of this, it has been recognized that Egypt has the ability to repay its foreign debt. ( Available in Arabic – German in PDF )
As the Egyptian economy approaches the red line, due to the rise in national debt, experts express their concerns through the discussion of statistics and factual observations. Mainly, the observations point to the local debt as being a chronic issue suffered by the economy, whilst Egypt’s ability to reimburse its external debt has been recognized. Studies conducted by the Data Centre of the Council of Ministries are discussed in detail, including the reasons behind the excessive rise and accumulation of local debt. Furthermore, the study stresses that the local nation debt has surpassed the government’s ability to reimburse the loan in installments with interest rates. Dr. El Mahdy insists that is no cause for pessimism as Egypt has the potential to diversify investment. Such is seen as a solution for overcoming this crisis. In addition he asserts that there is great potential for Arab cooperation in the movie industry, thus paving the way for the establishment of a strong Arab industry. Moreover, it is stressed that the Egyptian economy is in dire need to achieve an economic leap in order to arrive at a real GNP; however there are further implications to be discussed. In addition, Dr. Riad has his say by expressing a positive outlook on the matter, regarding a ray of hope in industrial investment.