Most bankruptcies and financial challenges facing Egypt's industries are not due to the January 25 Revolution, but rather because of external factors and the rising cost of raw materials and production machinery, said economic expert Ibrahim Essawy. Such factors are not due to the revolution, but will change with the correct political policies, said Essawy. There are a negligible number of bankruptcies among the 3,950,000 registered members of the Federation of the Chamber of Commerce, Essawy said, adding however that revolution-related suspensions of work and strikes in factories have contributed somewhat to the slowdown in economic activity. Essawy said each case of government help offered to struggling businesses must be studied carefully so that appropriate aid – financial or otherwise – can be delivered. Egypt saw an 11 percent increase in the rate of bankruptcy between January and May amongst companies and individuals, totaling 319 instances, according to a monthly report issued by the Information Center of the Cabinet of Ministers. There were 287 bankruptcies reported in the earlier period.
