Not so much debt-forgiveness in Egypt

Just as Egypt's late president Gamal Abdel Nasser garnered monumental popularity among Egyptian farmers by enacting a land reform law just a few months after he grabbed power in July 1952, President Mohamed Morsi has attempted to do the same, but without much success.

In September, Morsi announced that all farmers' outstanding debts below LE10,000 ($1,666) taken from Egypt's Development and Agricultural Credit Bank (DACB) would be cancelled.

While Egypt's small scale farmers were heartened by the President's promise, two months later, the farmers said the debt cancellations are only being applied to non-performing – i.e. delinquent –loans.

According to Hashem Farag, a farmer in the small rural village of Bernesht south of Cairo and member of the small farmers' union, only nine farmers in the village have so far benefited from the president’s decision.

"While hundreds of the village's farmers believed the president's decision would improve their financial situation, only delinquents have seen their debts alleviated," said Farag.