Deposits safe FOLLOWING rumours that the government was dipping into family savings in banks to cover its budget deficit, Hazem El-Beblawi, deputy prime minister and finance minister reassured this week that the government will continue to cover its budget deficit through the traditional means such as treasury bills and bonds and foreign assistance and borrowing. He stressed that the government respects the rights of depositors, and local and foreign investors. Egypt's 2011/12 budget has an LE134 billion budget deficit of which LE120 billion will be covered through local treasury bills and bonds which will be offered Monday and Thursday of every week. Partial lift of energy subsidies THERE is no going back on the decision to stop subsidising energy prices for energy intensive industries and the tourist industry while staying clear of the energy products needed by citizens, Minister of Petroleum Abdallah Ghorab said this week. He reassured that the price of gasoline or diesel for public transportation will not increase. He also said that butane gas cylinders will be distributed through a coupon system in Al-Wadi Al-Gadid and Marsa Matrouh governorates before it is applied in other governorates before the end of the year. Around 20 per cent of Egypt's budget in 2011\12 goes to subsidising energy. Exports up, customs down EGYPT'S exports increased 12 per cent in fiscal year 2010/11 to LE150 billion from LE135 billion in fiscal year 2009/10, according to figures released by the Egyptian Ministry of Finance. 49 per cent of the exports were finished goods, 42.2 per cent were equipment and industrial accessories. Raw materials came to 7.8 per cent of which 1.3 per cent were raw cotton. Imports were also up reaching LE358 billion compared to LE330 billion the year before. But customs revenues fell in the 2010-11 fiscal year, down to LE13.4 billion from LE14.67 billion the year before. Transport equipment and spare parts contributed the largest share of revenues at around 33 per cent, or around LE4.4 billion. Disputes to be settled THE EGYPTIAN cabinet is expected to settle the contracts of 17 major investors within days to enable these companies to resume their work in Egypt without the need to revert to arbitration or legal disputes. These companies include, among others, Damac Properties, Al-Futtaim Group and Omar Effendi, the local department store which had been bought by Saudi investor, Anwal. Osama Saleh, head of Egypt's Investment Authority had told Al-Ahram Weekly that settling these contracts gives credibility to investment in the Egyptian economy and reassures the investor that the government respects all its contracts. Most of the disputes had been related to the pricing and utilisation of land. Several of these companies had threatened to revert to arbitration when local courts issued verdicts annulling their contracts on the grounds that they were fraught with infractions. The aim of the settlements is to guarantee that investments will be safe and that contracts will be respected while protecting the rights of the government and the country, an anonymous official told the Weekly.
