An agreement to set up a 2,000 million U.S. dollar fund to help bolster the?
An agreement to set up a 2,000 million U.S. dollar fund to help bolster the egyptian economy was signed in Cairo on Saturday (21 August).
SYNOPSIS: The fund -- called the Gulf authority for Egypt -- is financed by Saudi arabia, Kuwait, the United Arab Emirates and Qatar.
The agreement was signed by the Egyptian Finance Minister, Dr. Ahmed Abu-Ismail, and his Saudi arabian counterpart, Sheikh Mohamed ali Abal Khail. The Sheikh is also the chairman of the board of governors of the fund. The Egyptian President, Colonel Anwar al-Sadat, has said capital for the fund is not enough to meet his country's economic needs. He has suggested the fund should be increased by up to 12,000 million U.S. dollars. Officials said Egypt--plagued by huge budgetary and balance of payments deficits--needs that much in hard currency for its current development programme.
The programme runs to 1980 and provides for boosting the ailing economy with much needed investment for established industries and new projects. However, the fund governors plan to monitor the supply of capital closely while Egypt decides on what the money should be spent.