Identifier
Created
Classification
Origin
09CAIRO1957
2009-10-14 14:12:00
UNCLASSIFIED
Embassy Cairo
Cable title:
EGYPT'S ECONOMY: OCTOBER 14 PRESS ROUND-UP
how-toVZCZCXYZ0011 RR RUEHWEB DE RUEHEG #1957 2871412 ZNR UUUUU ZZH R 141412Z OCT 09 FM AMEMBASSY CAIRO TO RUEHC/SECSTATE WASHDC 3884 INFO RUCPDOC/DEPT OF COMMERCE WASHDC RUEATRS/DEPT OF TREASURY WASHDC RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
UNCLAS CAIRO 001957
SIPDIS
STATE FOR NEA/ELA
E.O. 12958: N/A
TAGS: ECON EINV EFIN ETRD EAGR EPET PGOV EG
SUBJECT: EGYPT'S ECONOMY: OCTOBER 14 PRESS ROUND-UP
UNCLAS CAIRO 001957
SIPDIS
STATE FOR NEA/ELA
E.O. 12958: N/A
TAGS: ECON EINV EFIN ETRD EAGR EPET PGOV EG
SUBJECT: EGYPT'S ECONOMY: OCTOBER 14 PRESS ROUND-UP
1. (U) The following are notable economic news stories that appeared
over the past week in the Egyptian press:
-------------- --------------
High Court Considers Case on Gas Exports to Israel
-------------- --------------
2. (U) Egypt's Supreme Administrative Court began hearing arguments
in a case on natural gas exports to Israel. Retired Ambassador
Ibrahim Youssri, who heads a group called the Popular Campaign to
Stop Gas Exports to Israel, is asking the court to overturn a lower
court ruling that allowed gas exports to Israel to proceed. During
the session, the judge asked government lawyers to present all of
the original documents related to the case, including the contract
with East Mediterranean Gas (EMG). In addition, the judge asked
Ambassador Youssri to specify whether his complaint centers on the
allegedly below-market prices of the exports, or on the principle
that gas should not be exported to Israel at all. The case will
resume hearings on November 7(Al Shorouk, 10/4/2009).
--------------
Inflation Rises to 10.7% in September
--------------
3. (U) According to the data released by the government statistics
agency, the Central Agency for Public Mobilization and Statistics
(CAPMAS),annual urban headline inflation increased to 10.7% in
September 2009, from 9% in August 2009. The overall rise in
inflation was largely driven by an annualized 17.4% increase in food
prices, owing to increased consumption during the month of Ramadan
(Al Alam Al Youm, 10/11/2009).
-------------- --
Egypt Threatens to Regulate the Sugar Industry
-------------- --
4. (U) The Ministry of Trade and Industry is expected to issue a
decree in the coming week to regulate the sugar industry, following
the unprecedented rise in local prices. Sources at the ministry
accused traders of storing large quantities of sugar to sell later
at higher prices. Accordingly, the ministry is considering issuing a
decree to prevent sugar companies from supplying traders with
quantities exceeding those which traders can sell, to prevent
stockpiling and market manipulation. The decree also aims at
increasing the government's supervisory authority in the trading and
distribution of sugar in local markets. The threat of greater
regulation follows the GOE's suspension of tariffs on imported sugar
this summer, a move also intended to increase local supply (Al Masry
Al Youm, 10/4/2009).
SCOBEY
SIPDIS
STATE FOR NEA/ELA
E.O. 12958: N/A
TAGS: ECON EINV EFIN ETRD EAGR EPET PGOV EG
SUBJECT: EGYPT'S ECONOMY: OCTOBER 14 PRESS ROUND-UP
1. (U) The following are notable economic news stories that appeared
over the past week in the Egyptian press:
-------------- --------------
High Court Considers Case on Gas Exports to Israel
-------------- --------------
2. (U) Egypt's Supreme Administrative Court began hearing arguments
in a case on natural gas exports to Israel. Retired Ambassador
Ibrahim Youssri, who heads a group called the Popular Campaign to
Stop Gas Exports to Israel, is asking the court to overturn a lower
court ruling that allowed gas exports to Israel to proceed. During
the session, the judge asked government lawyers to present all of
the original documents related to the case, including the contract
with East Mediterranean Gas (EMG). In addition, the judge asked
Ambassador Youssri to specify whether his complaint centers on the
allegedly below-market prices of the exports, or on the principle
that gas should not be exported to Israel at all. The case will
resume hearings on November 7(Al Shorouk, 10/4/2009).
--------------
Inflation Rises to 10.7% in September
--------------
3. (U) According to the data released by the government statistics
agency, the Central Agency for Public Mobilization and Statistics
(CAPMAS),annual urban headline inflation increased to 10.7% in
September 2009, from 9% in August 2009. The overall rise in
inflation was largely driven by an annualized 17.4% increase in food
prices, owing to increased consumption during the month of Ramadan
(Al Alam Al Youm, 10/11/2009).
-------------- --
Egypt Threatens to Regulate the Sugar Industry
-------------- --
4. (U) The Ministry of Trade and Industry is expected to issue a
decree in the coming week to regulate the sugar industry, following
the unprecedented rise in local prices. Sources at the ministry
accused traders of storing large quantities of sugar to sell later
at higher prices. Accordingly, the ministry is considering issuing a
decree to prevent sugar companies from supplying traders with
quantities exceeding those which traders can sell, to prevent
stockpiling and market manipulation. The decree also aims at
increasing the government's supervisory authority in the trading and
distribution of sugar in local markets. The threat of greater
regulation follows the GOE's suspension of tariffs on imported sugar
this summer, a move also intended to increase local supply (Al Masry
Al Youm, 10/4/2009).
SCOBEY