U.S. Secretary of State John Kerry released $250 million dollars worth of economic aid to Egypt on Sunday after a weekend of meetings in Cairo. Calling it a “good faith effort,” Kerry pledged to deliver more cash if President Mohamed Morsy of the Muslim Brotherhood comes through with broad political and economic reforms.
In a written statement released following the meeting Kerry stated that Egypt needs help but must show progress in order to sway the U.S. congress to release more:
[box type=”bio”] “When Egypt takes the difficult steps to strengthen its economy and build political unity and justice, we will work with our Congress at home on additional support.”[/box]
Another condition is that Morsy obtain a loan package from the International Monetary Fund at which point the U.S. would contribute another $190 million to the Egyptian government budget and another $60 million in support for whats being referred to as an Egyptian-American Enterprise Fund geared toward Egypt’s entrepreneurs to help citizens earn undergraduate degrees and homegrown reforms which “put Egypt on the path to establishing a firm economic foundation and allow it to chart its own course.” Egyptian Finance Minister Almorsy Hegazi said Sunday that he expects an agreement between Egypt and the IMF to be clinched prior to parliamentary elections in April.
The above mentioned funds are part of President Barack Obama‘s $1 billion 2011 pledge to assist Egypt after the uprising that took place there which uprooted long time Egyptian president Hosni Mubarak.
[box type=”bio”] “It is clear that more hard work and compromise will be required to restore unity, political stability and economic health to Egypt,” Kerry said. “The upcoming parliamentary elections are a particularly critical step in Egypt’s democratic transition.”[/box]
It’s unclear when officials will begin hard work and compromise restoring unity, political stability and economic health here in the U.S. It’s suspected, however, that sending huge crates of cash overseas is detrimental to the economic health of the U.S. – especially during a time in which Washington can’t manage to come up with it’s own mortgage payment and beer money.
According to TOPIX.com this is what $250 million in cash looks like (this pile was from a Mexican drug bust, but you get the idea)