Gulf states step in with billion-dollar lifeline for Egypt
Gulf states step in with billion-dollar lifeline for Egypt | JPost | Israel News.
( This is clearly intended to undercut any Obama pressure on Egypt to appease the Moslem Brotherhood. For the first time that I can remember, I find myself supporting the Arab over the US’s foreign policy. – JW )
The United Arab Emirates has agreed to grant Egypt $1 billion and lend it another $2 billion, an Egyptian source said on Tuesday, throwing it a financial lifeline after the army ousted the country’s Islamist president last week.
The source also said Saudi Arabia may lend Egypt another $2 billion, which he expected to be confirmed within two days.
Egypt’s finances have been devastated by political and economic instability since the popular uprising that pushed Hosni Mubarak out of the presidency two and a half years ago.
The UAE’s $3 billion was expected to be part of a larger financial package from the Gulf emirate, said the source close to the talks. The loan would be in the form of a deposit at Egypt’s central bank, although the interest rate and maturity had yet to be finalized.
UAE Foreign Minister Sheikh Abdullah bin Zayed and National Security Adviser Sheikh Hazza bin Zayed flew to Cairo on Tuesday morning at the head of the most senior foreign delegation to visit Egypt since the overthrow on Wednesday of Mohamed Mursi.
He became president a year ago in Egypt’s first freely contested election.
The delegation was coming to “show full support to the people of Egypt – political support, economic support,” Egypt’s foreign ministry spokesman Badr Abdelatty said earlier.
With turmoil driving away foreign investors and tourists, Egypt is running dangerously short of cash to provide the subsidized bread and fuel that its 84 million people rely on. Egyptian newspapers, mainly controlled by the state or by Morsi’s opponents, described Monday’s violence as the result of terrorism by Morsi’s supporters.
Meanwhile, Egypt’s interim rulers issued a faster than expected timetable for elections to try to drag the country out of crisis, a day after 51 people were killed when troops fired on a crowd supporting Morsi.
The streets of Cairo were quiet on Tuesday but Morsi’s Muslim Brotherhood movement called for more protests later in the day, raising the risk of further violence.
Under pressure to restore democracy quickly, Adli Mansour, the judge named head of state by the army when it brought down Mursi last week, decreed overnight that a parliamentary vote would be held in about six months. That would be followed by a presidential election.
In an important positive signal for the transitional authorities, the ultra-orthodox Islamist Nour Party said it would accept ex-finance minister Samir Radwan as prime minister, potentially paving the way for an interim cabinet. The stakes were raised dramatically by the bloodshed on Monday, the worst since Morsi was toppled by the military. The army opened fire outside Cairo’s Republican Guard barracks where the deposed leader is believed to be held.
The bloodshed has also raised alarm among key donors such as the United States and the European Union, as well as in Israel, with which Egypt has had a US-backed peace treaty since 1979. Officials said troops fired in response to an attack by armed assailants. The protesters disputed that account, insisting they were conducting peaceful dawn prayers.
Mansour decreed that Egypt will hold new parliamentary elections once amendments to its suspended constitution are approved in a referendum. In what appeared to be an olive branch to Islamists, the decree included controversial language put into the constitution last year that defined the principles of Islamic sharia law.
The UAE – long skeptical of the Brotherhood – had pledged billions in aid to Egypt after the fall of Mubarak but held the money back during Morsi’s year in power.
The West has had a harder time formulating a public response, after years of pushing Arab leaders towards democracy while at the same time nervous about the Brotherhood’s rise. Demonstrators on both sides in Egypt have chanted anti-American slogans, accusing Washington of backing their enemies.
Washington has refrained from calling the military intervention a “coup” – a label that under US law would require it to halt aid. It called on Egypt’s army to exercise “maximum restraint” but has said it is not about to halt funding for Egypt, including the $1.3 billion it gives the military.
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WarSclerotic 
July 9, 2013 at 4:30 PM
…Because, Joseph, the Arab Kings are wise men, while Obama is a ”semidoct” – an unprepared man for his job.
July 9, 2013 at 4:46 PM
Crazy New World.
Egypt: Muslim Brotherhood spokesman leads crowd in chant of Obama slogan “Yes, we can!”
July 9, 2013 at 4:58 PM
They can chat anything they want till they’re blue in the face. The Moslem Brotherhood will never get anywhere with the American people. But THAT chant?!
July 9, 2013 at 6:05 PM
This video tells more about obavez than about the Brotherhood.
As for the Saudis and the UAE, they have good reason to support the opponents of the Brotherhood. They view the Brotherhood as a rival who threatens their absolute monarchies.
July 9, 2013 at 8:11 PM
This is just the kind of thing that needs to be shown aired by US media for all the people to see. Unfortunately, they won’t even show the demonstrations with signs against Obama.
July 9, 2013 at 6:13 PM
The decline for the USA as super power .
Obamadrama is destroying the USA !
But what is next.
July 9, 2013 at 8:15 PM
Not so fast Joop. It’s going to take more that a putz like Obama to end things here in the USA. He’s just a fart in a fast approaching hurricane. Unfortunately, we all have to put up with his foul odor until the winds arrive.
July 9, 2013 at 6:25 PM
Obama has just unwound the US out of two wars and a near financial holocaust. The last thing America needs is another war draining resourses.
July 9, 2013 at 8:23 PM
Now Obama is threatening to do a complete withdrawal in Afghanistan. If he does, that makes two things Obama actually did right. Leaving that sh*thole called Iraq is the first. Neither place is worth another drop of brave young American blood. Not now, not ever. I hope he follows through on his threat and pledges to never again engage in these God forsaken nation-building experiments again.
July 9, 2013 at 6:36 PM
Obama sees a Middle East full of Islamics. Islamics will rule their countries so his therory goes. So, find the moderates that America can work with. What he has not come to grips with yet is there are none…
July 9, 2013 at 8:44 PM
American will soon be energy independent and is leading the world into the the 21st Century with companies like Apple, Google and scores more. America is leaving the rest of the world to fend for itself. Too often in the 20th century countries laid back and said let America do it. Those days are over, it’s time for the rest of the world to be accountable and carry their weight!
July 9, 2013 at 10:16 PM
This is a clean and true statement, but there is a catch: leaving the rest of the world to carry out their own businesses might lead America, in a far future, to come back and solve the problems the rest of the world had generated. It already has happened in the modern history, at least twice. So America cannot isolate itself too much from the rest of the world; otherwise, America will be in an unpleasant position, dealing with certain problems on its very own shores and cities. Hard times ahead, anyway.
July 9, 2013 at 10:33 PM
Thats not quite usa policy any more the pentagon has won there will be reinvestment in the next 5 years,R&D has already being accelerated look at the advances with space x,what the usa is doing is removing the gravy train that went with defense procurement smart R&D,for instance the rail gun its now operational and 30 years ahead of the competition,this is the emergence of a asymmetric superpower as well as conventional with the ability to adapt and create very quickly
July 9, 2013 at 10:36 PM
Luis, your statement is a sad indictment on the rest of the world!
July 9, 2013 at 10:31 PM
There is this myth that essentially America alone fought the wars for the world in the 20th century and had America stayed out of WW2 America would do just fine.
This view is often repeated but nevertheless it is a myth.
Had America stayed out the axis powers would have conquered the whole of Europe and Asia.
Eurasia is a vast land mass with most of the world’s natural resources, the majority of the world’s population and the biggest industrial power.
In the long run the US would have only a small chance of winning against the combined power of Europe and Asia under the rule of the axis powers.
The Germans and Japanese with their highly advanced science and their huge war machine would shurely have posed an immense threat to the US.
This is the reason why America could not stay out of WW2.
I am iimmensly thankful for all American soldiers fighting for our freedom but I am also thankful for the Europeans who fought and died.
It is true that Europe could not win against the axis without America but it is also true that America could not win without its European allies.
Looking back at history we see that even with their combined effort victory was far from certain and that some important battles were on the edge and could easily have gone either way.
The battle of Midway is a good example.
Frankly it is an insult to all others who fought and died when some people pretend that America did all the fighting and all others did nothing.
Greece, the country where I was born, was attacked by Italy with superiour numbers and a massive superiority in armor.
Still the Greeks kicked the Italians all the way back to Albania.
This forced Hitler to attack and occupy Greece.
Near the end of the war Hitler said: “if the Italians hadn’t attacked Greece and needed our help, the war would have taken a different course. We could have anticipated the Russian cold by weeks and conquered Leningrad and Moscow. There would have been no Stalingrad”.
Greece payed a heavy price for her heroic fight against overwhelming odds and continued resistance even under German occupation.
It is estimated that during the German occupation alone 300,000 to 400,000 people died.
Greece payed an enourmous price in blood and members of my family were among them.
I don’t complain that I never saw my grandfather. All I’m expecting is that people study history before repeating such nonsense.
July 9, 2013 at 11:05 PM
The statement I made was over arching……
July 9, 2013 at 10:16 PM
Told you so time has changed “This is clearly intended to undercut any Obama pressure on Egypt to appease the Moslem Brotherhood. For the first time that I can remember, I find myself supporting the Arab over the US’s foreign policy. – JW”