Eygptians try to bring Revolution… Die with no help from CNN – IMF swoops down
CAIRO (Reuters) – Eleven people were killed in Cairo on Wednesday, medics said, when armed men attacked protesters demanding an end to army rule, prompting several candidates to suspend presidential campaigns and heightening doubts on the transition to democracy.
Leaders from Islamist and secular camps blamed the trouble on hired “thugs” doing the bidding of entrenched interests behind military rule and warned the generals not to use it as a pretext to delay their departure; the army reaffirmed its stated commitment to handing power to civilians by July.
Unidentified men armed with guns and batons attacked demonstrators who included hundreds of ultraconservative Salafi Islamists protesting at their candidate’s exclusion from the ballot for a first-round presidential vote on May 23 and 24.
For hours after the dawn raid, the security forces seemed unable or unwilling to put an end to the violence. As fighting raged near the Defence Ministry in the Abbasiya district of central Cairo, Reuters reporters saw men carrying guns, even a sword, while protesters threw rocks, bottles and petrol bombs.
Only in the afternoon did riot police arrive in large numbers to break up the bloody melee and the clashes abated.
Democracy campaigners blasted the military rulers of the Supreme Council of the Armed Forces (SCAF), which took over 15 months ago as veteran autocrat Hosni Mubarak was brought down by mass street protests during the Arab Spring of uprisings.
“SCAF and the government unable to protect civilians or in cahoots with thugs. Egypt going down the drain,” tweeted Mohamed ElBaradei, a Nobel Prize-winning former U.N. official.
Members of the SCAF met representatives of political parties and repeated a pledge to hold elections on time. Politicians who were present said they even offered to return to barracks over a month before the July deadline – in the albeit unlikely event that one of the 13 first-round candidates wins outright in May.
A runoff between the top two contenders would be in June.
However, the Muslim Brotherhood, Egypt’s biggest Islamist group which dominates a parliament elected in December, refused to join talks with the generals, saying Wednesday’s violence showed the army was trying to “obstruct the handover of power”.
The Brotherhood’s presidential candidate Mohamed Mursi suspended campaigning for two days, saying they would be mourning the dead. Several political groups said they would call on followers to mass in central Cairo’s Tahrir Square on Friday.
“I think it will be the practical response to all of what is happening now, be it the blood being spilt or the foot-dragging in the defined date for handing over power,” said senior Brotherhood official Essam el-Erian.
The other leading Islamist candidate, Abdel Moneim Abol Fotouh, suspended campaigning indefinitely in protest at the way the authorities had handled the clashes, a spokesman said.
Abol Fotouh and former Arab League chief Amr Moussa, the frontrunner among those with past ties to Mubarak, are seen as the most likely candidates to contest a head-to-head runoff.
On Twitter, Abol Fotouh said he could not now take part in an unprecedented televised debate with Moussa planned for Thursday “when today our youths are drowning in their blood”.
The hosting TV channel also said the event was delayed.
Moussa said: “The number of dead and injured foreshadows a disaster and it is unacceptable for security agencies to stand and watch as clashes continue and blood is shed.”
Medical and judicial sources gave a toll of 11 dead and over 160 wounded. The Interior Ministry said seven had died.
Ahmed Shahir, 24, a pharmacology student working at a makeshift clinic set up the scene, said men he described as thugs fired shots at an encampment of protesters including supporters of Hazem Salah Abu Ismail, the Salafi cleric barred from the election, and members of pro-democracy youth movements.
Local residents joined in the attack on the protesters.
Among the protesters were hardcore soccer fans and diehard secular revolutionaries skilled in street combat who dashed back and forth across debris-scattered streets, hurling rocks.
Wounded men were hauled away and others filled bottles with gasoline to throw at their opponents. Shots rang out and a Reuters journalist saw at least one attacker wielding a sword.
“Where is the army? Why are they not stopping these people?” cried a bystander.
The army, hailed as national saviour when it rallied behind protesters last year to oust fellow military man Mubarak, sent troops to the scene. But some armoured vehicles then beat a retreat when protesters attacked an officer who was taking video footage. Riot police later arrived in larger numbers and separated the two sides. The violence subsided by the afternoon.
Days of street violence also preceded the start of a staggered parliamentary election in November. That vote, Egypt’s first democratic election after six decades of rule by a succession of military autocrats, was mostly smooth.
Official campaigning for the presidential election began this week under a cloud, with the Brotherhood demanding that the army sack the cabinet of Prime Minister Kamal al-Ganzouri.
Parliament suspended its work for several days, saying the government was failing to respect its decisions.
Many Egyptians suspect the generals, who have built up vast economic and business interests over the years, will seek a strong influence even after the new president assumes power.
The latest unrest, limited to Cairo, was on too small a scale so far to influence the election, said Mustapha Kamel Al-Sayyid, a political science professor at Cairo University.
“These are small groups,” he said, adding that the violence could harden public attitudes against continued military rule.
IMF and other MF’s – Vultures picking the Bones of Freedom and national sovereignty
DUBAI (Reuters) – Egypt needs to do more to secure a $3.2 billion loan from the International Monetary Fund, including gathering broad political support and identifying other sources to finance its funding gap of up to $12 billion, an IMF official said on Wednesday.
Masood Ahmed, IMF director for the Middle East, told Reuters that Egypt still needed to do “some technical work” to finalize its economic programme.
Asked whether he thought there was enough domestic political support for the programme, Ahmed said: “I think that process (of getting political support) is advancing but I do not think we are at the point yet where we could move forward.”
“There’s still more work to be done to close down those three areas,” he said, referring to the economic programme, political support and alternative financial sources.
“We are ready as soon as pillars are there for that programme to move forward relatively quickly,” Ahmed said after presenting the regional economic outlook in Dubai.
Egypt and the IMF are in discussions on a $3.2 billion loan programme, which Egypt had requested earlier this year but which had been opposed by the powerful Muslim Brotherhood’s Freedom and Justice Party.
Egypt’s $236 billion economy has been laid low by 18 months of political turmoil.
Last week, parliament overwhelmingly rejected the army-appointed cabinet’s plan to cut state spending, hampering the government’s efforts to secure IMF help needed to avoid a fiscal crisis and potential currency devaluation.
“Egypt has pressing economic and financial challenges and that’s why we believe it is important to move forward now to finalize the content of the programme, to get support for it and to mobilize the financing for it,” Ahmed said.
The country’s finance minister said last week the government expected the Fund’s aid to start flowing from May.
The IMF is insisting that any agreement on financing is backed by Egypt’s government and political partners ahead of presidential elections later this month. This would ensure the deal would outlast the political transition following the polls.
The IMF expects Egypt’s inflation-adjusted economic growth to ease to 1.5 percent this year, which would be the slowest pace since a 0.3 percent expansion in 1992 and down from 1.8 percent in 2011. Its fiscal gap should widen to 10 percent of gross domestic product in 2012, from 9.9 percent last year.
Egypt has said it expects Saudi Arabia to deposit $1 billion at the Egyptian central bank by the end of April as part of a $2.7 billion package to support Egypt’s battered finances.
Egypt’s foreign reserves have tumbled by more than $20 billion to $15 billion during a year of political turmoil following the ouster of Hosni Mubarak.
Ahmed also said the IMF would consider further aid for Yemen after approving a $93.7 million loan for the poorest country in the Arab world in April, which was aimed at addressing an urgent balance of payments deficit.
“It’s hard to say yet (what the financing needs will be). But clearly the financing requirements for Yemen to embark on the programme of expanding employment and the economy will be significantly larger than the current phase of how to stabilize the economy after the crisis,” he said.
Yemeni officials have previously said the public sector would play a key role in job creation as the country attempts to stave off economic collapse after 15 months of political turmoil that saw President Ali Abdullah Saleh forced from office.
“In that context, that they move to the medium-term strategy the IMF would also consider how to support and accompany them during that process, including by providing financial support over a longer-term period and with amounts that are likely to be larger than the amount, we had so far provided for the immediate stabilization,” he said.
“The fiscal situation deteriorated significantly, this year, we believe it will stabilize,” Ahmed said.
Yemen’s $34 billion economy is seen shrinking 0.9 percent in real terms this year after a 10.5 percent plunge in 2011, the worst contraction since North and South Yemen unified in 1990, the IMF’s updated regional outlook showed on Thursday.
The IMF did not provide economic growth forecasts and 2011 estimates for Syria, rocked by a 14-month old uprising against President Bashar al-Assad, but Ahmed said that its economy was likely to contract this year as it did in 2011.
“It (the impact of sanctions) is hard to judge because it depends a bit on how rigorously the sanctions can be forced and depends on the shape and course of the conflict, which is hard to tell, and how it is going to affect production and what help if any Syria will be able to get,” he said.
“But nevertheless the best estimate is that there is going to be a continuous contraction of the Syrian economy this year.”