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Drop Egypt’s Debt letter to IMF around Spring meetings requesting transparency!

by Popular Campaign to Drop Egypt’s Debt

2012-05-07_Egypt_debtThe Popular Campaign to Drop Egypt’s Debt demands, in an open letter, that all conditionality clauses relating to the proposed $3.2 billion IMF loan to Egypt be revealed

Dear Ms. Christine Lagarde,

The Popular Campaign to Drop Egypt’s Debt is writing you to raise concerns on the way the IMF loan is being negotiated and propose actions by the IMF to correct the problems.

Unfortunately the Egyptian government continues to pursue the same style of the pre-January revolution loan handling. For example, the government continues to conceal the details of the economic program that is associated with the loan that Egypt is currently negotiating with the IMF. This approach is reflected in that:

1. The government has not disseminated the economic reform program through media outlets at any stage during its preparation. The details of the initial draft of the program were unveiled to the public only after the Campaign leaked the document to the media.

2. Until the writing of this letter, the parliament and the Ministry of Finance refuse to disclose the details of the economic reform program after it has been amended.

3. The economic reform program has not been subject to any form of public debate.

4. The economic reform program was never discussed in any public sessions in the parliament. It was only discussed behind closed doors among members of the parliament’s planning and budget committee, and representatives of the government and the IMF.

5. The parliamentary planning and budget committee had announced initially its refusal to accept the economic reform program. It then reversed its position and told the press it approves of the program, without any explanation to the public of the reasons for shifting its position.

These practices are in direct contradiction to the transparency and accountability principles of both the IMF and the Egyptian governments. The Egyptian people will bear responsibility for the obligations of this loan for years to come, and thus they must actively participate in formulating its terms.

Therefore, the Popular Campaign to Drop Egypt’s Debts urges the IMF to:

Looking forward to hearing you

Your sincerely,

The Popular Campaign to Drop Egypt’s Debts

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