Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Egypt subsidies cut much-needed 'bitter medicine' Sisi  Join our daily free Newsletter

MENAFN - AFP - 07/07/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - AFP) Egypt's President Abdel Fattah al-Sisi said Monday a decision to raise fuel prices was "bitter medicine" that should have been taken before, but was not as governments feared a backlash.

The authorities on Friday slashed state subsidies on petrol and diesel, sparking anger among taxi drivers and others affected.

"We have to take this bitter medicine," Sisi said in a televised national address commemorating Egypt's military crossing of the Suez Canal during the 1973 war against Israel, which took place on the 10th day of the Muslim holy month of Ramadan.

The ex-army chief, who toppled Islamist president Mohamed Morsi in July 2013 before himself being elected president by a landslide in May, has repeatedly advocated austerity to narrow the budget deficit.

The decision to cut fuel subsidies "has been delayed, it has been delayed for years", Sisi said, adding that "all (previous) governments were worried to take it".

The political turmoil unleashed by the ouster of strongman Hosni Mubarak in 2011 has devastated Egypt's economy, badly hitting key tourist revenues and investment.

Since then, successive governments have said subsidies - which made petrol in Egypt among the world's cheapest - must be lifted, but never took action, fearing a popular backlash.

"When you asked me to run for presidency, the agreement between me and you was that you bear with me," Sisi said, drawing a parallel with sacrifices endured by Egyptians during the 1973 war "to retrieve (their) dignity".

Authorities on Sunday also unveiled higher taxes on cigarettes and alcohol, and the government had previously warned that heavily subsidised electricity prices would be gradually raised over the next five years.

The state spends almost 30 percent of its budget on fuel and food subsidies, in a country where nearly 40 percent of the population of 86 million hovers around the poverty line.

Since the overthrow of Morsi, who was viewed with suspicion by regional powerhouses such as Saudi Arabia and the United Arab Emirates, Arab states in the oil-rich Gulf have pledged billions of dollars in aid to Egyptian authorities.


 


AFP




  MENA News Headlines
 Apr 26 2015 - Morsi's trial 'badly flawed': HRWDaily News Egypt
(MENAFN - Daily News Egypt) Human Rights Watch (HRW) described the first trial of former president Mohamed Morsi as "badly flawed", in a statement on Sunday.The watchdog added in its statement that ...

 Apr 26 2015 - Egypt returning to central role in world: MehlebDaily News Egypt
(MENAFN - Daily News Egypt) The State Information Service (SIS) hailed Prime Minister Ibrahim Mehleb's visit to Indonesia Sunday as "a message that Egypt has made a strong return to its natural and ...

 Apr 26 2015 - Egypt- Feud between Mortada Mansour and UWK continuesDaily News Egypt
(MENAFN - Daily News Egypt) The Criminal Court postponed to 10 May the trial of 21 Ultras White Knights (UWK) members on charges of the attempted murder of the Al-Zamalek club's president Mortada ...

 Apr 26 2015 - New Mondelez Egypt production-line investments are worth EGP 200 m: Managing directorDaily News Egypt
(MENAFN - Daily News Egypt) The Mondelez chocolate company has launched a new production-line under the name of "Marvellous Creations", according to Bassil Abul-Ata, Managing Director of Mondelez ...

 Apr 26 2015 - 6 banks request Citibank Egypt retail business acquisitionDaily News Egypt
(MENAFN - Daily News Egypt) Six banks have requested to acquire Citigroup's retail business in Egypt, with the Central Bank of Egypt (CBE) on top of the acquisition discussions, a Citibank Egypt ...

 Apr 26 2015 - Spike in 'single' cigarette sales expected to decrease tax proceeds by EGP 2bn: TradersDaily News Egypt
(MENAFN - Daily News Egypt) The Cairo and Giza Tobacco Traders Association expects a decrease in tax proceeds of EGP 2bn in the current fiscal year's national budget, due to a nationwide increase in ...

 Apr 26 2015 - Egypt- CBE reduces commission of credit letters to facilitate importsDaily News Egypt
(MENAFN - Daily News) EgyptImporters commented on the recent decision of Central Bank of Egypt (CBE), reducing commissions of opening letters of credit from 2.5% to 1.5%.The importers said the ...

 Apr 26 2015 - Banque du Caire targets EGP 2bn increase for retail portfolio by end of 2015: HusseinDaily News Egypt
(MENAFN - Daily News Egypt) Banque du Caire is targeting an increase of partial loans by EGP 2bn by the end of this year, to come in at a value of EGP 22bn.Ahmed Hussein, Director of Retail Banking ...

 Apr 26 2015 - Egypt- Consumer Protection emphasise maintaining mineral water pricesDaily News Egypt
(MENAFN - Daily News Egypt) As fears over water safety continue, measures are taken to ensuring mineral water prices remain unchanged.The Consumer Protection Department at the Ministry of Supply and ...

 Apr 26 2015 - Egypt- VAT law will raise inflation indicators, reduce purchasing power of consumers: Dcode ChairmanDaily News Egypt
(MENAFN - Daily News Egypt) Chairman of Dcode Economic and Financial Consulting Mohamed Farid expects inflation indicators to rise, while the purchasing power of consumers will be reduced with the ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help