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Omaha Steve

(99,678 posts)
Mon Sep 3, 2012, 10:07 PM Sep 2012

U.S. Is Near Pact to Cut $1 Billion From Egypt’s Debt

Source: NY Times

By STEVEN LEE MYERS

WASHINGTON — Nearly 16 months after first pledging to help Egypt’s failing economy, the Obama administration is nearing an agreement with the country’s new government to relieve $1 billion of its debt as part of an American and international assistance package intended to bolster its transition to democracy, administration officials said.

The administration’s efforts, delayed by Egypt’s political turmoil and by wariness in Washington about new leaders emerging from its first free elections, gained new urgency in recent weeks, even as the United States risks losing influence and investment opportunities to countries like China. President Mohamed Morsi chose China for his first official visit outside of the Middle East, although a spokesman said the crisis in Syria was the main issue driving the visit. In addition to the debt assistance, the administration has thrown its support behind a $4.8 billion loan being negotiated between Egypt and the International Monetary Fund. Last week, it dispatched the first of two delegations to work out details of the proposed debt assistance, as well as $375 million in financing and loan guarantees for American financiers who invest in Egypt and a $60 million investment fund for Egyptian businesses.

The assistance underscores the importance of shoring up Egypt at a time of turmoil and change across the Middle East, including the relatively peaceful uprisings in Egypt and Tunisia, Libya’s unfinished transition, the showdown over Iran’s nuclear program and the war in Syria.

Mr. Morsi has called for President Bashar al-Assad of Syria to leave power and end the bloodshed there, while China, along with Russia and Iran, has been a supporter of Mr. Assad as his military assaults opposition strongholds and civilians.

FULL story at link.



Read more: http://www.nytimes.com/2012/09/04/world/middleeast/us-prepares-economic-aid-to-bolster-democracy-in-egypt.html?partner=EXCITE&ei=5043

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U.S. Is Near Pact to Cut $1 Billion From Egypt’s Debt (Original Post) Omaha Steve Sep 2012 OP
and for american citizens underwater on their houses....too bad nt msongs Sep 2012 #1
too true coldbeer Sep 2012 #2
"Keep money in America. Let us be Progressive!" - The Iowa GOP thinks that is a conservative idea. pampango Sep 2012 #10
Unless they're scared of us MannyGoldstein Sep 2012 #3
Good point, but we are hardly alone or isolated on the planet bhikkhu Sep 2012 #4
A stable democracy? KareBear Sep 2012 #6
Perhaps 'giving' them a billion less in debt might get the Obama admin. a better chance to... Amonester Sep 2012 #8
I don't have an answer... KareBear Sep 2012 #11
I see it as a (costly) incentive to sort of 'keep listening to us' Amonester Sep 2012 #12
It used to be if you were a stable democracy Missycim Sep 2012 #14
Agreed KareBear Sep 2012 #19
We've been giving Egypt billions in aid for decades 4th law of robotics Sep 2012 #13
...paying Mubarak to get along with Israel bhikkhu Sep 2012 #17
loan restructure required in both instances Lucretius Sep 2012 #5
The entire WORLD needs to hit the reset button. Spitfire of ATJ Sep 2012 #7
You have any clue Missycim Sep 2012 #15
Only amongst the 1% that feel they're owed. Spitfire of ATJ Sep 2012 #16
There are few (if any) alternative systems that would produce as much food at low costs bhikkhu Sep 2012 #18
Face it, the whole world in in debt. Spitfire of ATJ Sep 2012 #20
A pittance. Less than went missing during Bush's war on Iraq Coyotl Sep 2012 #9

coldbeer

(306 posts)
2. too true
Mon Sep 3, 2012, 10:28 PM
Sep 2012

Those people need help and too many
have been foreclosed.

I used to drive through the developments
and wish I could afford those houses. I
am now glad that I couldn't. I could
have been me underwater.

Keep money in America. Let us be
Progressive!

pampango

(24,692 posts)
10. "Keep money in America. Let us be Progressive!" - The Iowa GOP thinks that is a conservative idea.
Tue Sep 4, 2012, 05:55 AM
Sep 2012

11.8 We support the elimination of foreign aid.

http://www.iowagop.org/about#platform

They want to "keep the money in America", too. Obviously they would not do anything progressive with it here in the US but their attitude towards foreign aid is the same.

 

MannyGoldstein

(34,589 posts)
3. Unless they're scared of us
Mon Sep 3, 2012, 10:59 PM
Sep 2012

Then we get treated like Egypt, like bankers, etc.

As long as we're sheep, we'll be treated like sheep. As food.

bhikkhu

(10,720 posts)
4. Good point, but we are hardly alone or isolated on the planet
Mon Sep 3, 2012, 11:00 PM
Sep 2012

If you look at what we have spent over the years in the middle east, and at the changes there over the past year, if another billion buys a stable democratic ally then its well worth it. The timing seems to be at a critical point - and there have been many times where no amount of money or effort would do any good at all. An unstable theocratic enemy could cost us a whole lot more than that!

KareBear

(192 posts)
6. A stable democracy?
Tue Sep 4, 2012, 12:23 AM
Sep 2012

Do you honestly think that a government controlled by Al-Ikhwan Al-Muslimeen will be stable? The new Egyptian government is on the verge of ethnic cleansing against the Coptic Christians with reports of literal crucifixions taking place, they shut down the last remaining synagogue in Egypt (the first time in 2000 years there has been no functional synagogue in Egypt), are crushing women's rights and freedom of speech, and are flirting with breaking the peace treaty with Israel by sending tanks into the Sinai. This is a disaster waiting to happen and we are their enablers.

Amonester

(11,541 posts)
8. Perhaps 'giving' them a billion less in debt might get the Obama admin. a better chance to...
Tue Sep 4, 2012, 12:55 AM
Sep 2012

be taken seriously (as in 'being listened to when they talk about STOPPING all that'), otherwise...

Maybe it's the only way to be 'listened' to (what else could be done? Surely not military agression, hmmm?).

Amonester

(11,541 posts)
12. I see it as a (costly) incentive to sort of 'keep listening to us'
Tue Sep 4, 2012, 12:31 PM
Sep 2012

'there might be another one (billion write off) if you do'

McCain would just (pressure R/R to) send troops (to die) there, don't you think?

Purity isn't of this world (sadly).

 

Missycim

(950 posts)
14. It used to be if you were a stable democracy
Tue Sep 4, 2012, 04:32 PM
Sep 2012

then you got the money, it shouldn't be the other way around.

bhikkhu

(10,720 posts)
17. ...paying Mubarak to get along with Israel
Tue Sep 4, 2012, 08:35 PM
Sep 2012

basically. Most people know we give Israel billions, but not that many know that we give Egypt almost as much.

If another billion positions us for some kind of exit strategy from that whole situation, then it is well worth it.

 

Lucretius

(18 posts)
5. loan restructure required in both instances
Mon Sep 3, 2012, 11:55 PM
Sep 2012

I can not see how writing off some sovereign debt that will never be recovered anyway would preclude writing down some domestic mortgage debt. But both will be met with howls of moral hazard.

bhikkhu

(10,720 posts)
18. There are few (if any) alternative systems that would produce as much food at low costs
Tue Sep 4, 2012, 08:40 PM
Sep 2012

...as an example of problems a "reset" switch might cause.

There are only 8 countries in the world that produce enough food to allow significant exports, and the US is one. What would happen if we just reset the whole financial infrastructure behind world food production? I don't know myself, but I'd be surprised to see improvements - as in, more food and lower costs.

 

Coyotl

(15,262 posts)
9. A pittance. Less than went missing during Bush's war on Iraq
Tue Sep 4, 2012, 02:49 AM
Sep 2012

which Karl Rove is likely spending to defeat Obama right now!

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