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 Egypts failing economy, the Obama administration is nearing an agreement with the countrys 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 administrations efforts, delayed by Egypts 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, Libyas unfinished transition, the showdown over Irans 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
msongs
(67,430 posts)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)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)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)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)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)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?).
KareBear
(192 posts)But rewarding this behavior with money seems to send the wrong message.
Amonester
(11,541 posts)'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)then you got the money, it shouldn't be the other way around.
Totally agree.
4th law of robotics
(6,801 posts)bhikkhu
(10,720 posts)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)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.
Spitfire of ATJ
(32,723 posts)Missycim
(950 posts)the level of chaos that would ensue?
Spitfire of ATJ
(32,723 posts)bhikkhu
(10,720 posts)...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.
Spitfire of ATJ
(32,723 posts)The question is,...to WHO...
Coyotl
(15,262 posts)which Karl Rove is likely spending to defeat Obama right now!