13/01/2004
Al-Alam Alyom Newspaper 2004/JANUARY /13
Some Egyptian economists have their say on the role of checks and the hard times this financial tool has been going through. They call for restoring its credibility, and stress its usefulness for reducing the amount of liquidity circulating in the markets. For this purpose, they demand a better law on checks. (Available in Arabic – German in PDF )
Checks have recently lost their credibility, as people fear that their check may be returned by banks and that they may never get their money, as has been the case in the past. As a result of this mistrust, most transactions have lately been carried out by cash, and this has eventually led to a lack of liquidity and stagnation. In this circumstance, the great utility of checks emerges as a tool which allows doing without cash. This is why many Egyptian businessmen are now demanding that the reputation of checks be restored, stressing the positive effects this would have for the economy as a whole. For this purpose, they call for a better law on checks.