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The Government Borrowing Policy is Under Fire
The Muslim Brotherhood’s MPs severely lashed out at the government policy of foreign borrowing that engulfed Egypt into debts.  In a parliamentary session dedicated to discuss some relative treaties, the MB’s lawmakers opposed the policy of employing funds in unprofitable projects. In addition, these loans along with its interests pose economical burdens impeding the process of develo
Wednesday, February 1,2006 00:00
by (Ikhwan web)
The Muslim Brotherhood’s MPs severely lashed out at the government policy of foreign borrowing that engulfed Egypt into debts.
 
In a parliamentary session dedicated to discuss some relative treaties, the MB’s lawmakers opposed the policy of employing funds in unprofitable projects. In addition, these loans along with its interests pose economical burdens impeding the process of development.
 
Mustafa Awadallah, a MP, proclaimed that loans are neither used to establish industrial institutions nor to solve the pressing problem of unemployment. In short, loans do not bring about any positive ripples on the national economy.
 
The Brotherhood’s parliamentarian, Abdel Wahab el-Deab, remarked that most of the loan-funded projects are not fulfilled. For example, the sewage venture of his constituency which has started in 1993 did not finish yet. Huge share of loans are consumed in meeting administrative procedures, he added.
 
On the behalf of the government, both Moveed Shhab, the president of the parliamentary councils, and Fayza Abu el-Naga, the State Minister for Foreign Cooperation, defended the policy on the assumption that development is unattainable without it.
 
According to Abu el-Naga, the process of borrowing is closely targeted to achieve development. Contrary to allegations, Egypt is listed as save-debt country where it repays its interests duly. 
 
For Shhab, taking on loan is the last resort. Egypt does not borrow unless for promoting its developing plans and upon the best conditions.
 
On the other side, the Brotherhood’s legislative Said Asker criticized Abu el-Naga’s remarks, asserting that Egypt is plunging into debts that amount to $ 560 billions. To put much stress, he cited the President Mubark saying ’Egypt has borrowed $ 4 millions and repaid $ 20 millions.’
 
Giving an example of useless projects financed by loans, Ahmed Deab of the Brotherhood said the equipment of the Technical School of Shobra has never been operated.
 
The MB’s lawmaker, Azab Mustafa, said the Finance Minister told the parliament, in 2003, that Egypt does not exceed the safety level of debts, estimated to be to $ 24 billions. Is Egypt now still on the save side of debts when it jumps to $ 63.153 billions?! He wondered.

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