VZCZCXYZ0006
RR RUEHWEB

DE RUEHEG #1396 2011322
ZNR UUUUU ZZH
R 201322Z JUL 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 3227
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS CAIRO 001396 
 
SIPDIS 
 
STATE FOR NEA/ELA 
 
E.O. 12958:  N/A 
TAGS: ECON EINV EFIN ETRD ENRG PGOV EG
SUBJECT: EGYPT'S ECONOMY: JULY 20 PRESS ROUND-UP 
 
¶1. (U) The following are notable economic news stories that appeared 
over the past week in the Egyptian press: 
 
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Bank Launches Mortgage Finance Program 
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¶2. (U) The National Bank of Egypt (NBE), Egypt's biggest bank, 
launched the largest mortgage finance program in local history. The 
LE10 billion (US$1.79 billion) mortgage program will target limited- 
and medium-income wage earners in particular. Tarek Amer, NBE 
Chairman, said that the bank plans to provide borrowers with 20-year 
loans to finance 80% of the cost of homes valued at a minimum of 
LE40,000 (US$7,143) and a maximum of LE3 million (US$540,000). (Al 
Alam Al Youm, 7/15/2009) 
 
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Egypt Extends Ban on Cement Exports 
----------------------------------- 
 
¶3. (U) Minister of Trade and Industry Rachid Mohamed Rachid 
announced that the Government of Egypt (GOE) has extended a ban on 
most cement exports to October 1, 2010, in order to deal with 
growing local demand, which has risen 26% in the first half of 2009 
over the same period last year, and to stabilize domestic prices. 
Rachid stated that the GOE has extended the export ban on gray 
clinker and gray Portland cement, which dominate Egypt's cement 
export industry. The minister had previously announced in April a 
four-month ban on cement exports. (Al Alam Al Youm, 7/16/2009) 
 
------------------------ 
Trade Deficit Decreasing 
------------------------ 
 
¶4. (U) A recent report by the Central Agency for Public Mobilization 
and Statistics (CAPMAS) showed that Egypt's trade deficit decreased 
by 11.9% in April 2009 compared to the same month last year, from 
LE9,811 billion (US$1.75 billion) to LE8,647 billion (US$1.54 
billion). The report also indicated that the month-to-month value of 
non-oil exports rose 7.9% from April 2008 to April this year, 
reaching LE7,512 billion (US$1.34 billion). (Al Ahram, 7/15/2009) 
 
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Oil and Natural Gas Production Increases 
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¶5. (U) A report by the Egyptian General Petroleum Corporation (EGPC) 
showed that production of crude oil increased 6% in FY2008/09 over 
FY2007/08, to 675,000 barrels per day. Natural gas production also 
rose to 6.4 billion cubic feet (BCF) per day compared to 6.0 BCF per 
day in FY2007/08. As of June 30, according to the report, Egypt's 
crude oil reserves were 4.4 billion barrels and natural gas reserves 
amounted to 77 trillion cubic feet. (Al Alam Al Youm, 7/15/2009) 
 
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GOE Releases FY2009/10 GDP Growth Objectives 
-------------------------------------------- 
 
¶6. (U) The Minister of Economic Development, Osman Mohamed Osman, 
announced that the GOE plans to use its economic and social 
development programs to boost GDP to LE1,181 billion (US$210.89 
billion) in FY2009/10, with a growth rate of approximately 4%, 
compared to LE1,040 billion (US$185.71 billion) in FY2008/09. Osman 
stated that achieving this growth rate would allow the economy to 
counter the negative impact of the global economic slowdown and 
generate higher growth once the crisis has run its course, with GDP 
growth projected to rise to 5% in FY2010/11. Osman said that in 
FY2009/10 income from manufacturing, tourism and the Suez Canal is 
expected to grow by 3.8%, 8.7% and 8%, respectively. However, the 
GOE also expects unemployment to rise to 9.5% in FY2009/10. (Al 
Ahram, 7/14/2009) 
 
-------------------------------------------- 
Stock Exchange Postpones Derivatives Trading 
-------------------------------------------- 
 
¶7. (U) Mohammad Omran, Deputy Chairman of the Egyptian Stock 
Exchange, said that the introduction of derivatives to the Egyptian 
stock market would be postponed until 2011, instead of by the end of 
2009 as had been planned previously. Omran attributed the delay to 
the global financial crisis, which has caused a decline in trading 
volume. (Al Ahram Al Eqtesady, 7/13/2009)