Some bankers said that the proposal suggested by People’s Assembly (Lower House of Parliament) to amend Egypt’s concession PPP Law no. 67 for the year 2010, will make Egypt’s economy isolated from international economy and will accordingly lead to its contraction, noting that the proposed amendment cannot be applied amid the current economic recession.
Bankers said this amendment will exclude foreign companies from participating in national projects and infrastructure projects, and that PPP projects (Public-Private Partnership) will be executed only by state-owned companies and public contractors companies.
Hossam Naser, former vice president of Industrial Development and Workers, said that the proposed amendment is not suitable for Egypt’s economic status as it will isolate the country’s economy. Naser added that Egypt requires the foreign expertise in providing latest technology applications.
Applying this amendment will increase unemployment rates, Naser added.
Ismail Mahmoud, head of compliance department at Blom Bank Egypt, said that this amendment will be disapproved as it will bring negative impacts on Egypt’s economy. Besides, the government is committed to comply with the contracts the banks had signed with foreign companies, Mahmoud confirmed.
Egypt is currently in need for foreign investments because of the economic recession and the foreign reserves decline. Mahmoud called on the government to raise taxes levied on foreign investments and to approve more investments to enter the country.