CAIRO — On Nov. 26, the Egyptian Ministry of Finance issued a statement reiterating that after Friday, Nov. 29, all government institutions would stop processing paper checks drawn on the Central Bank of Egypt. Instead, as of Dec. 1, all state financial transactions would be carried out using electronic payment and collection through the Government Fiscal Management Information System (GFMIS).

The shift, which will significantly enhance transparency and counter corruption, represents a major step toward financial inclusion, which the World Bank defines as “individuals and businesses hav[ing] access to useful and affordable financial products and services that meet their needs — transactions, payments, savings, credit and insurance — delivered in a responsible and sustainable way.”

Salah Eddin Fahmy, a professor of economics at Al-Azhar University, told Al-Monitor, “The Ministry of Finance issued orders in August to all ministries and government agencies to stop dealing with paper checks as of Dec. 1. In turn, these ministries and agencies called on all of their stakeholders in the private sector to adjust their structures, according to the new orders.”

Fahmy added, “The Ministry of Finance’s decision aims to achieve financial inclusion required by the International Monetary Fund (IMF). Christine Lagarde, head of the IMF, had called on Egyptian officials to disseminate banking culture among citizens. According to the report of the IMF mission to Egypt, only 10% of citizens have relationships with banks, which means that the culture of financial inclusion does not exist in Egypt.” The shift in payment and collecting methods is one of the IMF's conditions for a $12 billion loan package for Egypt.