Abou Al Naga Predicts An Increase In Egypt’s Foreign Reserves

Fayza Abou Al Naga, Minister of Planning and International Cooperation, affirmed that Egypt’s foreign reserves will be increased by the next month, after political situation become more stable.

Before 25th of January revolution Egypt used to spend US$ 3 billion monthly, but it is now spending US$ 600 million monthly.

During the meeting of Economical Affairs Committee at Shura Council (upper house of parliament), Abou Al Naga said that Egypt’s increased its wheat production to 3 million tons and this will contribute in providing more foreign currency for Egypt which were used to import more wheat.

There are negotiations with international financial institutions over acquiring a US$ one billion credit with a 0.5% interest, to finance the requirements of Egyptian General Petroleum Corporation. In addition, Islamic Development Bank has agreed to lend Egypt US$ 600 million to buy wheat, which will be repaid over three years. Abou Al Naga noted that these loans will ease the pressure on foreign reserves.

Egypt borrowed less than EGP one billion annually in the last ten years and the total foreign loans reached US$ 33 billion.

Abou Al Naga hailed Egyptian banks’ monetary policy, saying they adopt strict lending policy that protected Egypt against risks.

Egypt can borrow US$ 3.5 billion, as the country get finances for projects that will provide high revenues.

Central Bank of Egypt said that foreign currency reserves reached US$ 15 billion and foreign debt reached US$ 34 billion.

In addition, General Authority for Supply Commodities and Egyptian General Petroleum Corporation need US$ 1300 million to buy essential and petroleum products.

Gamal Negm El-Din, deputy governor of Central Bank of Egypt, said that Egyptian banks’ deposits rose by EGP 60 million in the last period.