Israel’s latest weapon against Palestine is Egypt’s debt
Israel’s latest weapon against Palestine is Egypt’s debt
Will Egypt agree to take in the Palestinian population expelled from Gaza in exchange for the cancellation of its external debt?
A leaked document written by Gila Gamaliel, the Israeli intelligence minister, came to light in late October amid the devastating war in Gaza.
It set out a proposal to relocate the residents of Gaza to Sinai (Egypt) as a solution “which will produce positive long-term strategic results”. But how could Egypt accept such a solution when most of its population appears to be pro-Palestinian?
The answer can be found in the world of macroeconomics: debt.
After being revealed by the Israeli newspaper Calcalist and WikiLeaks, the proposal is getting attention in the Israeli and Egyptian critical press. Tel Aviv appears to be in talks with Egyptian president Abdel Fattah al-Sisi about Egypt taking in Gazans and settling them in Sinai, in exchange for the cancellation of all its debts to the World Bank.
This could mean the Israeli government would take on the debts Egypt owes to multilateral creditors (such as the World Bank, the International Monetary Fund etc.) or that (with the support of the United States) it would convince allied Western countries to write off Egyptian debts to national institutions
Hope Egypt doesnt fall for this
if any institution or syndicate offers to clear your debts for a favor, it's because the favor is gonna cost you far more than any imaginary lines on some ledger. and they probably expect the circumstances to unfold in a way that sends you right back into their debt.
Even if they succeed they will have simoly created another Hezbollah in the South.
Exactly. Does anyone really think that genociding a group and pushing them off of their generational land will somehow reduce their hatred and mollify their radicalism?
What's the point of cancelling debt if accepting all these refugees will crash your economy regardless
Presumably because Egypt would still get the labor power of the refugees and not have to cede economic assets to its debtors.
There would have to be an investment period on any ROI
Egypt's economy is already in the gutter and I'm not sure if forgiving debt would fix it especially under Sisi
Egypt's problems don't lie with the population size or lack of physical labor
Buy time for sisi and co to syphon more cash from egypt to switzerland
Didn't Hamas reveal this info back in October as well?
You know, if
no longer exists then you no longer have to pay back the debtJust saying
hopefully elsisi likes having his head attached to his neck more than the cancellation of debts.