Bankers Differ On Morsi’s Visit To Brazil
Egyptian bankers have differed on the impact of the Egyptian President Mohamed Morsi’s visit to Brazil. Some have welcomed this visit for fostering economic cooperation between both countries and increasing bilateral trade which will thereby raises the number of agreements between Egyptian and Brazilian banks.
Others criticized the President for focusing on foreign relations, while leaving the internal situation unstable. They ruled out the possibility of sealing important agreements with Brazilian banks, because the country’s sovereign credit rating is constantly downgraded and investments are flowing out of the country.
El-Sayed El-Kosayer, chairman of the Industrial Development and Workers Bank of Egypt, stated that Morsi’s trip to Brazil will have positive impact on economy as Brazil enjoys a strong economy.
El-Kosayer ruled out that the President aims to secure loans or deposits from Brazil. He affirmed that the aim of the visit is enhancing trade relations between both countries and that Egyptian banks will play an important role with the Brazilian ones in issuing letters of credit and guarantee.
Maged Fahmy, former chairman of the Export Development Bank of Egypt, criticized the president’s policy which focuses on promoting relations with foreign countries, while ignores the deteriorating situation in the country as foreign investors will not enter the Egyptian market amid the current political turmoil and security vacuum.
Fahmy also noted that relying on loans from Arab countries will increase the country’s foreign debt especially without setting a clear strategy to pay off these debts.
“Economic recovery will be achieved through restoring order to the streets and fostering security, then we can draw investors to the country and go for international trips,” he stressed.
He ruled out that this visit will promote cooperation between Egyptian and Brazilian banks as the country’s sovereign credit rating is constantly downgraded and many investments are exiting the market.
