Kerry's visit likely to improve Egypt's chances for IMF loan

CAIRO (Xinhua) - The ongoing two-day visit of US Secretary of State John Kerry to Egypt may improve Egypt's chances for getting a suspended loan of $4.8 billion from the International Monetary Fund (IMF) to rescue the country's ailing economy.

Kerry said Saturday evening in Cairo that the United States is committed to assisting Egypt to become a democratic state with successful economy.

"This visit may lead to supporting Egypt's economy and of course improving the country's chances for getting the IMF rescue loan only if Kerry gets comfortable with the results of his meetings with the various sides, including the presidency, the opposition and the civil society organizations,"  Saeed al-Lawindy, political expert and researcher at al-Ahram Center for Political and Strategic Studies, told Xinhua.

Al-Lawindy, however, added that the United States would not do anything merely for the sake of Egypt but the relations between the two are based on mutual interests, noting the US first interest in the Middle East is to ensure the security of Israel.

"The United States is not innocent of the delays of the IMF as it is a prominent and influential member in the Fund," al-Lawindy continued, doubting that the IMF loan to Egypt is helpful in the first place.

"Tens of billions of dollars have been smuggled abroad and now Egypt struggles hard for a loan of $4.8 billion, which is very little compared to the money that has been looted," he added.

For his part, Mahmoud Bakry, political expert and executive editor-in-chief of El-Osboa newspaper, told Xinhua that in the US Congress, Kerry clearly supported Egypt's position to get the IMF loan.

However, Bakry said that even if the US tried to help Egypt with the IMF loan deal, it would be confronted by rejecting public will as the IMF demanded an economic reform program that required raising prices of some commodities and imposing extra taxes to guarantee Egypt's ability to pay off.  

Bakry believes that Kerry's visit in general could lead to calming down the tense political atmosphere in Egypt and could in the end lead the National Salvation Front (NSF) to give up its decision to boycott the upcoming parliamentary elections.

"Kerry has a strong relation with the Muslim Brotherhood group, the main supporters of President Mohamed Morsi," Bakry said, expressing belief that an integral part of Kerry's visit at such a chaotic time of constant anti-government protests in Egypt was to support Morsi.

Bakry said the visit had "an extraordinary significance" as Kerry was scheduled to meet with Morsi and his defense minister Sunday, amid calls of some protesters for letting the army run the country instead of the Islamist-dominated government.

On his first day in Cairo as US Secretary of State, Kerry met with Moussa, the leader of the opposition Conference Party and a key figure of the NSF, which decided to boycott the upcoming parliamentary elections due to alleged lack of guarantees for their integrity.

Bakry said that Kerry's meetings with Moussa, also former chief of the Arab League, and other opposition figures, before meeting with Morsi on Sunday, could be aiming to persuade them to take part in the elections.

The Conference Party spokesman Ahmed Kamel, however, told Xinhua that Moussa only raised to Kerry his concerns about Egypt's deteriorating economy and that he looked forward to more US support in this regard.

"Kerry agreed with Moussa and stressed the importance of political stability in Egypt as a prior step to economic recovery, " Kamel said.

When asked whether Moussa raised the opposition disagreement with the government to Kerry, Kamel told Xinhua "we do not accept foreign interference in our Egyptian domestic affairs."

Overall, Egyptian observers believe that Kerry's visit to Egypt was meant to urge political consensus between the Egyptian government and the opposition, which are currently poles apart, as a necessary step for democratic transition and approval of the IMF loan to rescue Egypt's deteriorating economy.