CAIRO: Interim President Adly Mansour issued a presidential decree 106 for 2014 approving three drafts to boost the economy through Arab Momentary Fund (AMF), Youm7 reported.
One is to increase the AMF’s authorized capital, the second to increase Egypt’s shares of the next subscription of AMF’s capital, and the third to approve subscription on the 50 percent rate imposed for AMF members.
The first draft was submitted by AMF’s board of governors in 2013, the second was issued in June 2013, while the third draft was issued by the Central Bank of Egypt (CBE), it said.
Through the first draft, AMF’s authorized capital will increase by 600 million Dinar, while the second draft will allow increasing state members’ subscription by 300 million Kuwaiti Dinar, depending on the current shares of their capital, according to the presidential decree published Thursday in Al-Waqa’i’a Al–Masriya newspaper.
“One half of the 300 million Kuwaiti Dinars’ subscription will be funded from AMF’s money reserve and the other will be by obliging state members to fund the remaining in five annual installments,” it said.
The Egyptian government previously announced its approval on the 50 percent subscription in an official statement, pointing out that Egypt’s subscription will total at 588 shares, valuing at 29.4 million Dinar.
This presidential decree will expand Egypt’s resources of finance, revitalize its shares in AMF’s capital, and allow Egypt to get more loans.
Minister of Planning and International Cooperation Ashraf Al-Araby announced in April that the government is set to negotiate with AMF to receive necessary finance to establish several power plants in Egypt in the upcoming period, Youm7 reported.
AMF is a regional organization following the Arab League founded in 1976 to comprise of 22 Arab countries. Its main object is to improve Arab monetary cooperation, encourage emerging markets, and facilitate trade between members.