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Egypt business welcomes army warning on strikes

Published Updated

 CAIRO: Egyptian industry leaders said a new warning from the country's military rulers of direct action against striking workers will help get the economy back on its feet after weeks of disruption.

Sunday, the start of Egypt's working week, will offer the clearest sign yet of whether the strikes in banks, factories, mines and government offices are drawing to an end.

If they are, it would raise optimism that businesses damaged by the political turmoil can return to normal in a few weeks and help limit losses of investors stung by the crisis.

Trading on Egypt's stock market was halted for three weeks after the market lost 69 billion Egyptian pounds ($11.74 billion) of its value over two days. The reopening has been delayed several times.

The army, which has held back from intervening to end strikes, protests and sit-ins since the downfall of President Hosni Mubarak, said on Friday they threatened national security and it would not allow them to continue.

"I think people will follow the instructions because they trust the army," said Mohamed Khamis, head of Egypt's Federation of Investment Associations.

"I hope that, if necessary, the army will put its words into action", said Mohamed Said Hanfy, General Manager of Egypt's Chamber of Metallurgical Industries.

He said industry could get going again in two to three days.

Banks are due to reopen on Sunday. Their closure for almost all of the week made companies scale back operations as they were unable to sell their goods or pay for supplies.

Copyright Reuters, 2011

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