John Kerry says aid to Egypt depends on economic reform

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US Secretary of State John Kerry on Saturday again urged Egyptian President Mohamed Morsi to make concrete progress on economic reforms and human rights, to secure a $4.8 billion International Monetary Fund loan, saying the measures are needed to receive further aid from the U.S. Congress, an American official said.

Kerry met Egyptian President Mohamed Morsi for about an hour on the sidelines of an African Union summit on Saturday, discussing Syria's civil war, the Israeli-Palestinian conflict, human rights in Egypt and the country's faltering economy, U.S official said.

Egypt's Islamist-led government has been resistant to introduce the austerity measures needed to win the IMF funding, including raising taxes and cutting fuel subsidies, fearing such painful reforms could provoke social unrest.

However, an IMF deal could help shore up investor and donor concerns after two years of political instability since the overthrow of former president Hosni Mubarak in early 2011. The instability has depressed tourism, a crucial industry for Egypt.

Last year the IMF reached a deal in principle to provide a $4.8 billion loan to help finance the Egyptian government while it undertakes reforms.

The official, who spoke on condition of anonymity, said that Kerry pointed out that the reforms were necessary to convince American lawmakers to move forward in providing more economic support for the country, which borders US ally Israel.

The official added that Kerry urged Egypt to work and to take actions in order to achieve the reforms now to move towards the requirements to get the IMF package.

Local News Agency: Middle East Bureau / VCS
Shooting Dateline: (Archive footage)
Shooting Location: Cairo, Egypt
Publishing Time: May 26, 2013
Length: 00:01:43
Video Size: 85.0 MB
Language: Arabic
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Organized by:
Correspondent:
Camera: VCS

SHOTLIST:

  1. Various shots of President Morsi meeting with US Secretary of State John Kerry in Cairo (Archive)
  2. Various shots of the press conference of Egypt’s PM Hesham Kandil and IMF chief Christine Lagarde in Cairo (Archive)
  3. Various shots of protests in Cairo (Archive)
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