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A fund to support Egypt: The plan for the economy

A bunch of businessmen created the “Fund in Support of Egypt” (Account No. 306306), an initiative that aims at collecting money for Egypt’s economy.

The authority to dispose of the fund lies with the current president of Egypt – in this case interim president Adly Mansour. The plan is to gather over LE10 billion to support Egypt in the coming period. The fund can be found in all Egyptian banks under the same account number 306306.

The initiative comes as the army removed former president Mohamed Morsi after millions of Egyptians gathered in the streets calling for early elections.

As several Western media outlets describe what has happened as a “coup d’etat”, people have been contemplating that the United States government might have to stop its aid to Egypt as – according to its own law - the American government is not allowed to provide financial aid to governments that took power in military coups. Today, America’s financial aid to Egypt has reached a total of $1.5 billion a year.

Egypt was also hoping for a loan worth $4.8 billion from the International Monetary Fund (IMF) and both parties have been in talks for over a year now. Yet, after the happenings of last week, the IMF said it would wait and monitor the events unraveling in Egypt at that time, before resuming talks. To Egypt, the loan is not just about the money, but also about regaining investors’ confidence.

Fund 306306 is therefore one way to fight the budget deficit of the country and regain the confidence of foreign and local investors.

The Supreme Council of Armed Forces already announced that it will donate LE300 million in the name of all its soldiers and officers to the fund.

Moderator Khairy Ramadan received a number of phone calls from public figures and businessmen on Friday during his show “Momken” on CBC – most of which promised to contribute to the fund.

It seemed like foreign investors were more confident about placing donations than local investors. A Saudi Arabian businessman is said to donate $10 million and 20 Land Cruisers for the Egyptian police and a foreign businessman said he would add LE5 billion.

Film star Ghada Abdel Razek vowed to donate LE1 million to the fund “in support of Egypt’s people” and actress Laila Elwi is said to donate $10 thousand.

Business tycoon Sadek ElSewedy also announced that he will deposit LE25 million in the fund on Sunday. Businessman AbdelRahman ElKahwagy is planning to donate LE100 thousand and Head of the Judges’ Club Justice Ahmed ElZanad suggested that all judges donate their one-month-salary to the fund, whereas he himself will add LE25 thousand.

The “Young Judges” movement also vowed to contribute part of their monthly salary to the fund.