Mohamed Barakat, President of the Union of Arab Banks and President of Banque Misr, said that there are a number of indicators that reflect improved economic performance, at the forefront of which is the stabilisation of the exchange market. This is one of the important elements for decisions within investment circles that guarantee the lack of erosion on the investments that they pump into the Egyptian market in foreign currencies. It also enables feasibility studies.
The second indicator, according to Barakat, is represented by the build-up of foreign monetary resources in the banking sector leading to concessions and selling of dollars by individuals and companies, especially remittances from Egyptians abroad. Additionally, the government has been keen to send positive messages to the market and investors and to pump in the money allocated for the first stage of its economic stimulus plan to end the current crisis.
Despite that, the President of the Union of Arab Banks and Banque Misr promises a recovery for work and production. He added, “Is it not necessary for us all to invest the current enthusiasm and wave of allegiance and love for the country towards production and work. The most important thing is work proficiency because without it there can be no discussion of achieving the goals of the revolution, whether bread, freedom, social justice, or human dignity.” He went on to say that, “the revolution means the independence of national decision-making. One of the basic conditions of this is the economic ability to support it. Without a strong economy based on high rates of production with the ability to compete, it will remain difficult to speak about progress and overcoming the crisis with appropriate speed.” He indicated that, “the Egyptian economy has strong capabilities and real opportunities, we only lack the will and dedication to work and carry the burdens for a short time.”
Barakat added that, “Egypt needs its dedicated children to multiply work hours and performance proficiency.” He indicated that, “No one else is ready to undertake the work in the name of Egyptians. If our brothers in Saudi Arabic, and the Emirates, and Kuwait supported the economy to overcome the crisis, then we must take the opportunity to increase production and its quality. Likewise, the return of security and stabilisation are necessary elements to push economic performance.”
Regarding application of a maximum wage, there is support inside the National Council for Wages for a maximum income with the exemption of banks due to their nature that requires the presence of capabilities and cadres with expertise. Barakat confirmed that public banks already applied a maximum wage in January 2012 in accordance with a decision by the prime minister.
He added, “Unfortunately, some may misunderstand our discussion on the maximum wage in Banks. In reality, the financial sectors, and in particular banks, in every country are pillars of success. Their ability to compete is based on the ability to make correct decisions concerning the provision of credit and loans, as well as the bank’s strategy to achieve its general goals for the economy, but at the same time to maintain its strength, solvency, and competitiveness with the other banks in the market. This is what requires the presence of expertise and cadres with knowledge of the modern and continuous developments in the banking industry.”
The President of the Union of Arab Banks and Banque Misr mentioned that implementation of the Maximum wage law – which began effectively in January 2012 – may lead to the fleeing of capabilities and their leaving the public banks for the private banks. This will weaken the power and ability of these banks, which represent important players in the funding of industry and economic production plans in conformity with national goals according to international banking standards. Especially since these banks have enjoyed the power of their financial centers and solvency and succeeded in multiplying their profits – which enter the state treasury – thanks to the attraction of expertise that has undertaken, with the cooperation of the Central Bank, comprehensive re-structuring in order to raise the competitive ability of this sector. This has strengthened its role in supporting the national economy and achieving financial stabilisation throughout the most recent period.
Translated from AlBorsa Daily http://goo.gl/wLseLo