Emad Kenawy, head of Division of Importers at the Federation of Egyptian Chambers of Commerce (FEDCOC), said that the economic crisis affects all segments of Egyptian society.
Kenawy added that solutions that do not require a huge budget must be thought of, but this would require bold decisions to mitigate the effects of the crisis.
He noted that reducing bank interest rates would eliminate most of the negative effects of the economic crisis on the citizens and the government.
Kenawy said: “When we decrease interest rates significantly, money savers would invest in trade, agriculture, micro, small and medium enterprises, stocks, and real estate. Reducing interest rates means lower financing costs for production projects, and this would decrease prices of different products.
He added that cutting interest rates will boost business which means more products at reasonable prices for citizens. Additionally, it will push for starting new businesses which would transform the Egyptian economy into one that depends on production.
However, Kenawy noted that his idea will increase inflation in the beginning due to the rise of liquidity and purchasing power.
