Investors continue to avoid projects in Egypt following February's uprising
Egyptian traders follow market activity at the Cairo stock exchange. Prime Minister Kamal al-Ganzouri has called on Egyptians to set aside their political differences for the sake of the economy, warning that the country's finances are deteriorating alarmingly. © Khaled Desouki - AFP
Investors continue to avoid projects in Egypt following February's uprising
AFP
Last updated: December 22, 2011

Egypt Prime Minister urges unity for sake of economy

Prime Minister Kamal al-Ganzouri called on Egyptians on Thursday to set aside their political differences for the sake of the economy, warning that the country's finances were deteriorating alarmingly.

The appeal came a day after Moody's Investors Service downgraded Egypt's government bond rating from B1 to B2 and placed it on review for further possible downgrade over political instability and the worsening economy.

The military-appointed prime minister told a press conference that much of the aid promised by donor countries had yet to arrive, while the country suffered an outflow of $9 billion in the past few months.

"Only a billion has arrived" out of $10.5 billion pledged by Arab countries, he said.

"The G8 met and decided on $35 billion for Egypt and Tunisia," he added referring to the developed nations' club. "Nothing has arrived yet.

"Nine billion dollars left Egypt in the past few months," he added.

"Doesn't that demand of Egypt and its people sit down and talk?" he asked. "Isn't it useful to sit down and push forward the economy a little?"

Investors continue to avoid projects in the country after a popular uprising ousted veteran president Hosni Mubarak in February.

Foreign reserves in Egypt have fallen from $36 billion at the beginning of the year to $20 billion now. By February, they are projected to fall to $15 billion, a level at which it will become difficult to pay for imports such as wheat, analysts say.

Ganzouri's nomination as caretaker premier in November by the military rulers who took over from Mubarak prompted a sit-in outside the cabinet office by protesters demanding an immediate transition to a civilian government with full powers.

Five straight days of clashes from Friday between the protesters and security forces left at least 17 people dead, the health ministry said on Thursday, and sparked an international outcry.

Activists have called for a mass rally on Friday, dubbed the "Friday of Restoring Honour," to demand the military hold accountable soldiers responsible for abuses.

Voters went to the polls again on Thursday in run-offs for the second stage of staggered parliamentary elections, a landmark vote that has been overshadowed by the protest deaths.

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