EGYPT: SUEZ CANAL REVENUES FALL 21 PERCENT IN MARCH

In continuation of a downward trend, Egypt's Suez Canal revenues dropped 21 percent to USD 327.9 million this past March from USD 416.9 million the previous year, according to a government statement. Although the figures for March are an improvement on February's earnings, which were the lowest since April 2006 at USD 301.8 million, Suez Canal revenues are expected to continue dropping steadily into the next fiscal year as a result of the ongoing financial crisis. The number of vessels using the waterway last month was 1,439, down from 1,699 in March 2008. In February 2009, only 1,272 ships passed through Suez, a five-year low in canal traffic. The Suez Canal is a vital source of foreign currency for Egypt, along with tourism, oil and gas exports and remittances from Egyptians living abroad. It is also a contributor to Egypt's economic growth, constituting 0.7 percent of Egypt's 7.2 percent overall growth for the 2007-2008 fiscal year. It appears that revenues from the canal can be expected to continue dropping for the foreseeable future. Cairo investment bank EFG-Hermes expects total revenues for the canal to drop 10 percent for the 2008-2009 fiscal year from USD 5.1 billion in 2007-2008, and a further 25 percent in the coming fiscal year beginning July 1.