Finance Minister Samir Radwan said the current government’s immediate priorities centred on helping Egyptians directly affected by 18 days of protests, as well as enacting quick measures that could boost the economy.

The protests ravaged Egypt’s economy, forcing banks and companies to close and the stock market to halt operations. The bourse yesterday postponed the reopening of trading until next week.

Radwan, in a meeting with British Trade and Investment Minister Stephen Green, said he would like London’s help in either securing debt forgiveness from Europe, or at least a forgiveness of loan interest.

Egypt owes EU member states about $9 billion (R64bn), according to officials. EU officials in Cairo said the Egyptian government had yet to submit a formal request for debt forgiveness to EU member states.

But European foreign ministers have already been discussing a comprehensive economic and trade package to help countries in north Africa affected by the turmoil in Egypt, Tunisia and Libya. EU foreign policy chief Catherine Ashton was in Cairo yesterday to meet with officials, though it was not clear whether the debt issue was on the agenda.

The calls came as the European Investment Bank (EIB) called on the EU to allow it more funds to support the transition to democracy in Tunisia, Egypt and other countries in the area. The EIB had used up the e8.7bn (R85bn) allocated for the region between 2008 and 2013 faster than expected.

The unrest in Egypt shattered projections of the country’s economy growing by as much as 6 percent in fiscal year 2010/11. The government has cut its forecast for gross domestic product growth in half, while experts have offered estimates ranging from 1.7 percent to 3 percent for the year.

Cairo-based Mideast investment bank EFG-Hermes said it was projecting a contraction of 2.5 percent for 2011, in a reflection that the economic spasms would extend well through the end of the year.

The government has estimated that the unrest cost the nation about $1.7bn in the span of two weeks, with half that figure from tourism losses.

Officials have said more than 210 000 tourists fled the country late last month. EgyptAir is offering 25 of its latest aircraft for lease as the national carrier has lost 80 percent of its projected revenue so far this year amid a steep drop in passenger demand. – Sapa-AP

(Source: Business Report)