Moody’s said it expected Egyptian banks to remain well-funded because of their strong deposit bases, supported by remittances from Egyptians working abroad. This lets them avoid relying on riskier funding from domestic or foreign markets.
Last month Fitch Ratings raised the outlook for its B-minus rating of Egypt to stable from negative, citing financial aid from the Gulf and a somewhat calmer political situation.
$1.3 billion in U.S. military aid went to Egypt last month, when Secretary of State John Kerry quietly decided that it was in the national interest despite Egypt’s failure to meet democracy standards.
Kerry made the decision well before an Egyptian court this week convicted 43 democracy workers, including 16 Americans, in what the United States regards as a politically motivated case against pro-democracy non-governmental organizations.
Under U.S. law, for the $1.3 billion to flow the secretary of state must certify that the Egyptian government “is supporting the transition to civilian government, including holding free and fair elections, implementing policies to protect freedom of expression, association and religion, and due process of law.”
The legislation, championed by Senator Patrick Leahy, a Vermont Democrat, also gives the U.S. government the ability to waive that condition if it deems this in the U.S. national security interest and provides a detailed justification. The military, is the most powerful force in the country. On 29 January 2013, the Egyptian military, now headed by General al-Sisi, said: “[t]he continuing conflict between political forces and their differences concerning the management of the country could lead to a collapse of the state and threaten future generations.” a warning to the military’s junior partner, the Muslim Brotherhood in governing that it risks replacement lest it arrest the instability threatening the military’s extensive material interests in the Egyptian political economy.
”We want more power and training from the Army so that it can protect and defend our nation,” Morsi said. Speaking during a meeting with leaders, soldiers and non-commissioned officers of the Armed Forces, field armies and military zones after performing the March 22 Friday prayers at the headquarters of the Central Military Zone, Morsi said Egypt is moving forward and neither stops nor looks back.
“Our hope in the future is much more than those who want to hinder our progress,” Morsi asserted during the meeting that was attended by Defense Minister Colonel General Abdel-Fatah el-Sisi and Chief of Staff Lt. General Sedki Sobhi.
Morsi extended greetings to members of the Armed Forces across Egypt, commending their role in securing the revolution and vital facilities in the country.
[August 6, 2011]
Protesters seeking greater and faster change. The generals have mismanaged the transition to democratic rule, operating without transparency and dragging their feet in weeding out Mubarak loyalists from the judiciary, the civil service and the police force. Their ultimate fear is that the military will allow much of Mubarak’s authoritarian regime to stay in place. By cultivating the Brotherhood, the generals can take advantage of their large popular support base to counter the young protesters’ influence. wp