While speculation abounds about president of 27 years Hosni Mubarak’s intentions for Egypt’s political future, prime minister Ahmed Nazif’s government is winning praise for its application to reform. With new prudential requirements about to affect the banking sector – and much anticipation about planned bank privatisations – the view in Cairo and the investor community is that, finally, reform progress can be expected on the Nile.
There are signs of investor interest in the bank sales that are under way as local banks consolidate. And considerable international goodwill is backing up Mr Nazif’s effort – reflected in a significant planned increase in World Bank support, potentially worth up to $2.8bn in 2005/06-2008/09 for projects including financial sector reforms.
