President Mohammed Morsi has promised that Egypt \'will not go bankrupt\' Egyptian President Mohammed Morsi has reassured the country\'s newly empowered senate that Egypt will not go bankrupt as long as it is active in production. In a speech to members of the Shura Council on Saturday, Morsi insisted there had been gains as well as losses in the battered economy. \"General indicators for the social and economic situation have shown some noticeable progress,\" Morsi said, blaming the weeks-long protests in November and December for damaging tourism.
And in comments apparently meant to reassure foreign lenders and investors, he said the country\'s depleting reserves in fact registered an increase by November and pledged to double them in the future.
\"I say to all, both at home and abroad, the state of financial institutions is not what some are trying to picture,\" he said, adding that foreign reserves increased by $1.1 billion from July to $15.5 billion in November. \"We cannot even consider this satisfactory. In June 2010 it was $35 billion. But in July 2012 it was $14.4 billion,\" he said.
\"But with Egypt now approaching stability, and with a sense of responsibility, we will do our utmost to double it (reserves) in future,\" he promised.
Morsi said that four million tourists had visited Egypt in the last four months, with the revenue of Suez Canal increasing to around $2 billion. He added that Egypt’s economy managed to achieve 2.6 percent growth, while inflation was at its lowest levels despite the recent challenges.
The president said that support for the Egyptian economy was essential, to pave the way for establishing a modern state. He blamed the economic policies adopted by Egypt’s former regime for the current situation in Egypt.
He also congratulated members of the Shura Council, praising them for their cooperation with the government, in addition to holding a dialogue with the different political and national powers.
He said that the Council had gained the confidence of the people, to issue legislation during this critical period until the parliamentary elections.
He added that the Egyptian people are equal in front of the law, adding that they are now enjoying democracy after the January 25 Revolution which saw the ousting of President Hosni Mubarak.
On the other hand, President Morsi expressed his support for the Syrian people, adding that the Syrian revolution would ultimately achieve its objectives, including freedom, social justice, social and dignity.
Additional reporting: AFP