Egypt requests $4.8bn IMF loan
Al Akhbar | August 22, 2012
Egypt has formally requested a $4.8 billion loan from the International Monetary Fund, a spokesman for its president said on Wednesday during a visit to Cairo by IMF chief Christine Lagarde to discuss support for the country’s ailing economy.
Egypt’s finance minister said last week Cairo would discuss the possibility of the bigger-than-expected loan from the fund. Egypt’s previous government had requested a $3.2 billion package but the deal was not finalized.
Lagarde’s presence was requested by Egypt and could signal a fresh determination on both sides to iron out a loan after President Mohammed Mursi, who took office on June 30, appointed his first government last month.
“We have officially requested a $4.8 billion loan from the IMF and talks are currently going on inside about the request,” spokesman Yasser Ali told Reuters as Lagarde held discussions with Mursi. He said any details would be announced later.
An IMF official also confirmed the request had been made.
During 18 months of political turmoil since the overthrow of autocratic leader Hosni Mubarak, successive Egyptian governments negotiated with the IMF to secure emergency funding.
The Muslim Brotherhood was originally skeptical of the IMF loan, which it feared would undermine Egypt’s sovereignty by keeping it indebted to the IMF.
The IMF has a track record of failed policies in a number of developing countries, including Argentina and a number of African countries.
Sections of Egypt’s political and economic elite fear IMF involvement in resuscitating Egypt’s economy might in fact worsen the situation even further, as previously seen throughout Africa.
But Egypt’s fiscal and balance of payment problems have worsened, prompting the Muslim Brotherhood to surrender its opposition to the deal.
An exodus of foreign investors in the wake of the turmoil left local banks shouldering much of the short-term and other lending to the state. The government has also borrowed directly from the central bank.
Foreign reserves have fallen to well under half levels seen before last year’s popular uprising against Mubarak and investors’ reluctance to return is born partly of fears that a sharp currency devaluation could wipe out any returns.
(Al-Akhbar, Reuters)
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Egyptian president to attend NAM summit in Tehran
Press TV – August 18, 2012
Egypt’s official news agency, MENA, said on Saturday that President Mohamed Morsi plans to attend the upcoming Non Aligned Movement (NAM) summit in Tehran.
Morsi’s trip to Tehran will be the first such visit since Iran and Egypt severed ties more than 30 years ago after Cairo signed the 1978 Camp David Accord with the Israeli regime and offered asylum to the deposed Iranian dictator, Mohammad Reza Pahlavi.
The 16th summit of the NAM member states will be held in the Iranian capital on August 26-31.
The Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei will address the Tehran NAM summit.
United Nations Secretary General Ban Ki-moon is also expected to partake in the event during which the Islamic Republic will assume the rotating presidency of the movement for three years.
NAM, an international organization with 120 member states and 21 observer countries, is considered as not formally aligned with or against any major power bloc.
NAM’s purpose, as stated in the Havana Declaration of 1979, is to ensure “the national independence, sovereignty, territorial integrity and security of non-aligned countries.”
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‘Israel likely orchestrated Sinai attacks’
PressTVGlobalNews | August 15, 2012
It all began on 5th of August when masked gunmen attacked Egyptian border guards in Sinai Peninsula killing 16 of them and injuring many others. The attackers then sneaked into Israel, six of whom were killed in a firefight with the Israeli soldiers. No Israeli was injured.
Tel-Aviv said the incident is a “wake up call” for Egypt in dealing with it QUOTE “terrorists”.
The Egyptian President vowed to retake the Sinai Peninsula and declared three days of mourning. Hamas accused Israel of planning and executing the terrorist attack.
But who would benefit from such an attack?
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Shifting Truths in Sinai: The political value of murdering Egyptians
By Ramzy Baroud | Press TV | August 13, 2012
Two Land Cruisers filled with about fifteen well-built gunmen in ski masks and all-black outfits appear seemingly out of nowhere. Behind them is vast, open desert. They approach a group of soldiers huddled around a simple meal as they prepare to break their Ramadan fast. The gunmen open fire, leaving the soldiers with no chance of retrieving their weapons.
This is not an opening scene out of a Hollywood action movie. The massacre actually took place at an Egyptian military post in northern Sinai on August 5th. The description above was conveyed by an eyewitness, Eissa Mohamed Salama, in a statement made to the Associated Press (August 8). The gunmen were well-trained. Their overt confidence can only be explained by the fact that “one militant got out a camera and filmed the bodies of the soldiers.”
One is immediately baffled by this. Why would the masked militants wish to document the killings if they were about to embark on what can be considered a suicide mission in Israel? “The gunmen then approached the Israeli border,” with two vehicles, one reportedly a stolen Egyptian armored personnel carrier. The BBC, citing Israeli officials, reported that one of the vehicles “exploded on the frontier,” while the other broke through the Israeli border, “travelled about 2km into Israel before being disabled by the Israeli air force” (BBC News Online, August 7). According to the BBC report, citing Israeli sources, there were about 35 gunmen in total, all clad in traditional Bedouin attire.
Their mission into Israel was suicidal, since, unlike Sinai, they had nowhere to escape. But who would embark on such a logistically complex mission, document it on camera, and then fail to take responsibility for it? The brazen attack seemed to have little military wisdom, but it did possess a sinister political logic.
Only 48 hours before the attack, the media was awash with reports about the return of electricity in the Gaza Strip. The impoverished Strip’s generators have not run on full capacity for about six years – since Hamas was elected in the occupied territories. The Israeli siege and subsequent wars killed and wounded thousands, but they failed to bend Gaza’s political will. For Gazans, the keyword to their survival in the face of Israel’s blockade was ‘Egypt’.
The Egyptian revolution on January 25, 2011 carried a multitude of meanings for all sectors of Egyptian society, and the Middle East at large. For Palestinians in Gaza, it heralded the possibility of a lifeline. The nearly 1,000 tunnels dug to assist in Gaza’s survival would amount to nothing if compared to a decisive Egyptian decision to end the siege by opening the Rafah border.
In fact, a decision was taking place in stages. Hamas, which governs Gaza, was a branch of Egypt’s Muslim Brotherhood. The latter is now the lead political force in the country, and, despite the military’s obduracy, it has managed to claim the country’s presidency as well.
In late July, a high level Hamas delegation met in Cairo. All the stress and trepidation of the last 16 months seemed to have come to an end, as Hamas chief Khaled Mashaal, his deputy Musa Abu Marzouq and other members of the group’s politburo met with President Mohammed Morsi. The country’s official news agency reported Morsi’s declarations of full support “for the Palestinian nation’s struggle to achieve its legitimate rights”. According to Reuters, Morsi’s top priority was achieving unity “between Hamas and Fatah, supplying Gaza with fuel and electricity and easing the restrictions on the border crossing between Gaza and Egypt.”
Juxtapose that scene – where a historical milestone has finally been reached – with an AFP photo of Israeli Prime Minister Benjamin Netanyahu and his Defense Minister Ehud Barak, standing triumphantly next to a burnt Egyptian vehicle that was reportedly stolen by the Sinai gunmen. The message here is that only Israel is serious about fighting terror. Israeli newspaper Haaretz’s accompanying article started with this revelation: “Israel shared some of the intelligence it received with the Egyptian army prior to the incident, but there is no evidence Egypt acted on the information.” This was meant to further humiliate Egypt’s military.
Naturally, Israel blamed Gaza, even though there is no material evidence to back such accusations. Some in Egypt’s media pounced on the opportunity to blame Gaza for Egypt’s security problems in Sinai as well. The loudest amongst them were completely silent when, on August 18, 2011, Israel killed six Egyptian soldiers in Sinai. Then, Israel carried out a series of strikes against Gaza, killing and wounding many, while claiming that Gaza was a source of attack against Israeli civilians. Later the Israeli media dismissed the connection as flawed. No apologies for the Gaza deaths, of course, and AP, Reuters and others are still blaming Palestinians for the attack near Eilat last year. Then, Palestinian factions opted not to escalate to spare Egypt an unwanted conflict with Israel during a most sensitive transition.
None of that seems relevant now. Egypt is busy destroying the tunnels, continuing efforts that were funded by the US a few years ago. It also closed the Gaza-Egypt crossing, and is being ‘permitted’ by Israel to use attack helicopters in Sinai to hunt for elusive terrorists. Within days, Gaza’s misfortunes were multiplied and once more Palestinians are pleading their case. “Haniyeh calls on Morsi to open border crossing closed since Sunday’s Sinai attack, say(ing) ‘Gaza could never be anything but a source of stability for Egypt,” reported Reuters.
Israeli officials and analysts are, of course, beside themselves with anticipation. The opportunity is simply too great not to be utilized fully. Commenting in Egypt-based OnIslam, Abdelrahman Rashdan wrote that according to the Israeli intelligence scenario, “Iranians, Palestinians, Egyptians, and al-Qaeda operatives all moved from Lebanon to attack Egypt, Israel and defend Syria.”
In Western mainstream media, few asked the question of who benefits from all of this – from once more isolating Gaza, shutting down the tunnels, severing Egyptian-Palestinian ties, embroiling the Egyptian military in a security nightmare in Sinai, and much more?
The Muslim Brotherhood website had an answer. It suggested that the incident ‘can be attributed to the Mossad.’ True, some Western media outlets reported the statement, but not with any degree of seriousness or due analysis. The BBC even offered its own context: “Conspiracy theories are popular across the Arab world,” ending the discussion with an Israeli dismissal of the accusation as ‘nonsense.’ Case closed. But it shouldn’t be.
Before embarking on a wild goose chase in Sinai, urgent questions must be asked and answered. Haphazard action will only make things worse for Egypt, Palestine and for Sinai’s long-neglected Bedouin population.
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Egypt: Mursi retires army chief Tantawi
Morsi changes Egypt Army leadership; cancels addendum to Constitutional declaration; appoints Mahmoud Mekki as vice president
Ahram Online | August 12, 2012
President Morsi made a bundle of sweeping decisions on Sunday afternoon, announced by the presidential spokesperson in a televised statement.
First, Morsi cancelled the addendum to the constitutional declaration, which was issued by the Supreme Council of the Armed Forces (SCAF) on 17 June. The addendum included clauses that gave the armed forces a high level of autonomy; whereas SCAF had the final say in all issues related to the military. It also stipulated that the head of SCAF, Field Marshal Hussein Tantawi, was to remain minister of defence until a new constitution is drafted.
Secondly, Morsi issued a decision to retire Hussein Tantawi, the minister of defence and the general commander of the Armed Forces.
Morsi also retired Sami Anan, the Amry’s Chief of Staff, from his duties.
Morsi also decided to award both men state medals and appoint them as advisors to the president.
Thirdly, the president appointed the head of the military intelligence, Abdel Fatah El-Sisi, as Minister of Defence to replace Tantawi.
Sedky Sobhy, the commander of the Third Army, was appointed as Chief of Staff of the armed forces.
Morsi also retired the Commander of the Navy, Mohab Memish, and appointed him as head of the Suez Canal Authority.
Reda Hafez, the commander of the Air Force, was also retired and appointed as minister of Military Production.
Mohamed El-Assar, the SCAF member in charge of armaments, was appointed as assistant to the Minsiter of Defence.
Fourth, Morsi appointed Mahmoud Mekki, the deputy head of the Cassation Court, as his Vice President.
~
Al Akhbar reports:
… Tantawi was defense minister for nearly two decades under Mubarak but was much despised in Egypt.
The military council’s second in command, Chief of Staff Sami Annan, was also ordered to retire.
A general told Reuters that the decisions had been made in consultation with Tantawi.
“The decision was based on consultation with the field marshal and the rest of the military council,” General Mohamed el-Assar told Reuters. …
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Israel evacuated military outpost near Rafah hours before Sinai attack
MEMO | August 8, 2012
Israel evacuated military outpost near Rafah hours before Sinai attackThe Israel Defence Forces knew about the attack which targeted an Egyptian army post on the border between Egypt and the Gaza Strip, and evacuated an outpost close to the area where the attack took place in advance of the incident. The IDF’s southern area commander was involved in taking the decision to evacuate army personnel.
According to reports on Hebrew Radio, intelligence warning about Sunday’s attack was received last Friday; this pushed the IDF to take a number of preventive measures a few hours before the bombings. The moves included ordering all Israeli tourists and nationals to leave Sinai and the evacuation of an Israeli military outpost near the attack site.
The radio reports claim that the IDF noticed a small Egyptian armoured vehicle about two kilometres from the border which started to weave its way around concrete barriers before it was fired upon by the Israeli soldiers. Nevertheless, the vehicle managed to make its way towards the Karam Abu Salem crossing point where heavy machine guns were used against it. It is alleged that the focus was on a small cart which apparently contained high explosives and exploded as soon as it was targeted by the Israelis.
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Muslim Brotherhood: “Israel Is Connected To Sinai attack”
By Saed Bannoura | IMEMC News | August 07, 2012
The Muslim Brotherhood in Egypt stated that Sunday’s attack against an Egyptian military base in the Sinai, “could be attributed to the Israeli Mossad”, adding that this attack aimed to foil efforts of newly-elected Islamist President Mohammad Morsi.
In an online statement, the Brotherhood said that Israel is trying to foil the achievements of the Egyptian revolution that removed former President Hosni Mubarak from power. The Brotherhood added, “this attack pushes all related sides into reconsidering the articles of the Egyptian-Israeli peace agreement”.
The Brotherhood stated that after the Egyptian revolution several groups tried to sabotage popular achievements and began plotting against the country and its people.
“Yesterday, a group of criminals attacked our policemen, killed nearly twenty soldiers, brothers, in an ugly crime, before the criminals managed to hijack two armored vehicles and drove them towards the border”, the Brotherhood said. “Immediately after the attack, Zionist media agencies accused fighters in Gaza of being behind the criminal attack; the timing of the attack comes to create a rift between Gaza and Egypt”.
The Brotherhood also said that the attack aims to prove the failure of the new Egyptian government, formed just three days ago, “to foil the reform agenda of the newly elected Islamic president”.
“This crime carries the signature of the Israeli Mossad as Israel has been trying to sabotage the achievements of the revolution, especially when taking into consideration that just a few days before this attack was carried out, Israel called on its tourists to leave Sinai”, the Brotherhood added.
The Muslim Brotherhood further called on the Egyptian people to counter the criminal activities collaborators, and to stand with the newly elected president in his efforts to restore law and order, and to maintain a strong security situation.
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Analysts say Sinai attack attempt to strain Egypt-Gaza relations
Ma’an – August 6, 2012
GAZA CITY – The attack on a Sinai police station that killed 16 Egyptian officers on Sunday was an attempt to strain relations between Egypt and Gaza, political analysts said Monday.
“What happened in Egypt was a crime and organized terror meant to drive a wedge in Palestinian-Egyptian relations. It is possible that external hands are interfering with Egypt after Muhammad Mursi became president,” Gaza-based analyst Mustafa al-Sawwaf told Ma’an.
Palestinians have no interest in attacking Egyptian forces, but Israel has been unsettled by the improvement in relations between Gaza rulers Hamas and Egypt’s recently elected Muslim Brotherhood president, al-Sawwaf said.
Egypt’s former President Hosni Mubarak, who was overthrown by a citizen revolt in Jan. 2011, had played a key role in maintaining Israel’s siege on the Gaza Strip, but Mursi has pledged measures to ease the blockade and held several high-level meetings with Hamas.
Al-Sawwaf said some parties within Egypt and at an international level were uncomfortable with Hamas’ friendly relations with Mursi. Hamas has condemned the Sinai attack and vowed not to let anyone threaten Egypt’s security.
Faysal Abu Shalha, a Fatah MP in Gaza, said he hoped Mursi would still implement his pledges to aid Palestinians in the besieged enclave.
But Akram Atallah, a political analyst based in Bethlehem, said he feared residents of Gaza could pay a heavy price for the deaths of the Egyptian officers, particularly if militants in Gaza were involved in the attack.
Mursi had promised to extend the opening hours of the Rafah crossing but Egyptian security officials said the Egypt-Gaza border was indefinitely closed in the wake of the attack.
Attallah told Ma’an he suspected Israel was involved in the attack. He said Israel knew about the raid and noted that it had advised its citizens to leave Sinai days earlier.
He added that Israeli forces assassinated a man in Gaza earlier on Sunday claiming that he was involved in a plot “to execute a terror attack against Israeli civilians via the Israel-Egypt border.”
Hamza Abu Shanab, a Gaza-based analyst, said the Sinai attack was an opportunity for Mursi to cancel Egypt’s 1979 peace agreement with Israel.
The Camp David agreement limits the number of soldiers Egypt can deploy to Sinai, Abu Shanab noted, and so Mursi must ask Israel’s permission to enlarge its force in the peninsula.
An Israeli refusal would be embarrassing as Tel Aviv has called on Cairo to tighten its grip on Sinai, Abu Shanab added.
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Ahmadinejad personally invites Morsi to attend Non-Aligned Movement summit in Tehran
Mehr News Agency | July 21, 2012
TEHRAN – In a telephone conversation earlier this month President Mahmoud Ahmadinejad personally invited his Egyptian counterpart Mohamed Morsi to attend the Non-Aligned Movement summit in Tehran in late August, the aharam online said on its website on Saturday.
Iranian Foreign Ministry spokesperson Ramin Mehmanparast has confirmed the invitation, describing Morsi as a principal guest of the the event.
The Mehr News Agency correspondent has learned that Mojtaba Hashemi-Samareh, the senior advisor to Ahmadinejad, will visit Cairo to deliver Ahmadinejad’s invitation letter to Morsi.
Egypt currently holds NAM presidency. It will hand over the presidency of the body to Iran for a period of three years. As of 2012, the movement had 120 members and 21 observer countries.
Relations between Egypt and Iran were strained since they severed diplomatic ties in 1980 following Iran’s 1979 Islamic Revolution.
President Anwar Al-Sadat – a strong ally of the ousted monarch Shah Mohammad Reza Pahlavi – severely attacked the Islamic revolution.
Only a few months after Egypt’s 2011 uprising, the first Iranian envoy to Cairo in over 30 years was appointed. Months before that, Egypt had allowed two Iranian naval vessels pass through the Suez Canal, also a first-time event in 30 years.
Morsi orders release of 572 inmates
Press TV – July 20, 2012
Egyptian President Mohamed Morsi has ordered the release of 572 people detained by the Army since last year’s revolution.
Morsi, who took office last month as Egypt’s first elected civilian president, on Thursday ordered military courts to grant amnesty to the defendants, AFP reported.
The Egyptian president earlier set up a committee to examine the cases of civilians put on trial by the military. The committee says 11,879 Egyptians were detained by the military throughout out the uprising that ousted former dictator Hosni Mubarak. Out of them, 9,714 have since been released.
Human rights activists and bodies have unanimously called for the end of military trials of civilians.
“International law is crystal clear on this: No civilian, regardless of the crime, should be tried by a military court,” Sarah Leah Whitson, Middle East and North Africa director at Human Rights Watch (HRW), said this week.
“Military trials and arrests of civilians by the military have continued, despite the June 30 handover to civilian authority,” the HRW noted.
Sworn in on June 30, Morsi is locked in a power struggle with the powerful Supreme Council of the Armed Forces.
Last week, Egyptians thronged the iconic Tahrir Square in Cairo to express solidarity with Morsi over his decree to reconvene parliament.
The parliament, dominated by Muslim Brotherhood lawmakers, was dissolved in line with a ruling by the Supreme Constitutional Court, based on a decision by the military, prior to the presidential elections.
