Egypt Needs Foreign Aid to Prop Up Economy
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iStockphoto/Thinkstock(CAIRO) — Among the chief reasons for the toppling of Egyptian President Mohamed Morsi’s regime were fears that he was more concerned with establishing an Islamist state than fixing the country’s weak economy.
A week after Morsi’s removal, Egypt remains in the same economic fix and stands to lose even more ground due to the uncertainty of the military-backed government’s ability to win support from a majority of the public.
The Obama administration is still in a quandary about the circumstances surrounding Morsi’s removal since the U.S. law dictates financial aid must be cut off to governments where leaders are removed by a military coup.
Currently, Egypt gets $1.5 billion annually from Washington.
The White House hasn’t referred to it as such but officials prefer to withhold judgment until they see how things develop with the military-controlled government.
However, Cairo’s Arab neighbors have no such qualms, with Saudi Arabia and the United Arab Emirates pledging $8 billion in grants, loans and fuel followed by Kuwait’s promise Wednesday of a $4 billion package.
Copyright 2013 ABC News Radio