| A SUPPLEMENT TO EUROMONEY/AUGUST 1996 Investment jewel on the NileWhen the new Egyptian government set to work this January, it began like most of its predecessors by announcing a raft of reforms. The markets had heard such pronouncements many times since the principle of economic reform was first established in 1990 and real steps were taken to liberalize prices, abolish subsidies and controls on foreign exchange and capital, and move towards liberalized interest rates. After four months virtually nothing had changed and the administration of premier Kamal el-Ganzouri was being written off. Then in April something happened that galvanized the government. During a visit to Sharm El Sheikhin Sinai, president Hosni Mubarak was asked by a TV interviewer how he would judge the success of his new government. Turning to Ganzouri, with what one local banker described as "a significant look", the president replied: "By the speed with which it pushes through the economic reform programme." Since then, hardly a Wednesday cabinet meeting has taken place without a welter of legislative changes seizing the headlines in the next day's newspapers. Many of these such as allowing limited foreign ownership of land have been executive orders based on existing but never implemented legislation. |