Egypt's cabinet reshuffled

Egypt's Prime Minister Essam Sharaf announced a cabinet reshuffle and then had trouble with the details. The swearing-in was delayed because he had to go to hospital to test for low blood pressure. He asked incumbents to continue in their posts until the baton could be passed to those nominated to succeed. First one, then another of the Ministers Designate withdrew. The muddle demonstrates the lack of political experience and acuity of those currently governing Egypt, both in the military and among the civilians.

The ministers of justice, interior, electricity, international co-operation, education, petroleum, culture, environment, tourism, manpower (labour) and social solidarity have all kept their posts.

Key changes include the appointment of two deputy prime ministers, both in their mid-70s, which scarcely reflects the demographics of the new Egypt.

A veteran economist, Hazem Beblawi, has been appointed as the deputy prime minister for economic affairs as well as finance minister. He replaces Samir Radwan who was seen as being too closely associated with the old ruling National Democratic Party (NDP) and in favour of a major role in the economy.

Beblawi, who had worked for many years in the UN and other agencies, is a former chairman of the Export Development Bank. He has stated in early interviews his commitment to the market economy.

He was a founding member of the new, secular Egyptian Social Democratic Party, although has also been associated with the liberal Wafd party and has been critical of the old regime.

The Wafd has a number of other members in the cabinet, including the incumbent Minister of Tourism Mounir Fakhri Abdel-Nour and Minister of Information Osama Heikal.

For more news and expert analysis about Egypt, please see Egypt Politics & Security.

© 2011 Menas Associates

Egypt scraps plans for IMF loan

Egypt's Finance Minister Samir Radwan has said that the government has scrapped plans to seek loans from the International Monetary Fund (IMF) and World Bank. The news follows revisions of the 2011-12 budget, which have reduced the GDP from 11 per cent to 8.6 per cent.

The unofficial consensus seems to be that the decision was partly a by-product of the "pressure of public opinion" as many of those who took part in the country's uprising criticised the role of the IMF.

In May, Radwan decried the situation in Egypt, saying it needed additional funds to rebuild itself after the revolution. He subsequently agreed a £1.9 billion 12-month stand-by loan with the IMF, alongside other loan deals with the World Bank and the African Development Bank.

It later emerged that many Egyptians were unhappy with the prospect of an IMF loan, feeling it was a betrayal of the revolution. Radwan, however, did not confirm this to be the case but said that the loans were no longer needed as talks with business groups and the military council resulted in the deficit being cut from EGP170 billion to EGP134 billion.

The finance finister also added that Egypt would cover the greater part of the deficit from "local sources", and neighbouring States such as Saudi Arabia and Qatar, which gifted Egypt $500 million just in the past week.

Sources: BBC News, The Daily Star, Sydney Morning Herald

For more news and expert analysis about Egypt, please see Egypt Politics & Security.