Egypt sends additional funding bill to parliament to spur growth

Cairo : The Egyptian government sent a bill for additional public spending of 10 billion Egyptian pounds (Dh6.6204) to the upper house of parliament as part of its effort to support economic growth.

Nine billion pounds would be directed to water and wastewater projects, the assembly said in a faxed statement yesterday in Cairo.

The remaining one billion pounds will go to housing, development and construction works, the statement said.

Further study

The upper house will study the bill before sending it on to the lower house for approval.

The National Democratic Party of President Hosni Mubarak, who had ordered the government to boost spending, dominates the government as well as both the houses of parliament in Egypt.

Economic growth in the most populous Arab country accelerated to 4.9 per cent in the third quarter from 4.7 per cent in the previous three months of 2009.

The government expects the economy to expand by as much as 5.5 per cent in the fiscal year through June, Investment Minister Mahmoud Mohi Al Deen said this month.

Growth is still below the average seven per cent achieved in the three fiscal years through June 2008 after the global financial crisis hurt revenue from tourism, the Suez Canal and foreign direct investment.

Tax fine

Orascom obtains waiver

Orascom Telecom Holding said it has obtained a waiver from the "Majority Senior Secured Lenders" under a $2.5 billion credit agreement, as a result of the Algerian tax fine made against the company.

The waiver expires on January 26, 2010, Cairo-based Orascom said yesterday in a statement on its website.

"The company is currently seeking the approval of its Majority Senior Secured Lenders for a longer term solution to address the impact of the Algerian tax claim, based on the current plan to raise equity through a rights issue," the statement said.