While Egypt’s post-revolution transition will undoubtedly bring about  new challenges in the relationship between our two nations, we must remember ours is a relationship that has weathered bumps in the road before, ultimately resulting in a stronger bond.

With this history in mind, it is in the interest of our enduring relationship that we move forward with our efforts to help Egypt overcome its current economic  hardships.  In the past year, we have witnessed a dramatic transformation in the Middle East and North Africa.  This transformation brings with it significant implications and opportunities not only for citizen’s of the region, but for the United States and the American business community.

Here at the Chamber, we house the U.S.-Egypt Business Council (USEBC), which identified the growing problem of Egyptian debt many months ago. Therefore, USEBC requested that the Peterson Institute conduct a debt relief study to provide recommendations that set a course of action in advancing the collaborative economic interests between the U.S. and Egypt.

The study found that there are three fundamental determinants of U.S. policy in the context of debt relief.

• Many other countries have expressed an interest to help Egypt’s democratic revolution, but tangible support is needed now.
• The country is currently facing a large financial gap, estimated at $11 billion in 2011 and also a large one in 2012.  A year ago, Egypt had $37 billion in foreign reserves. Today, international reserves stand at $16.4 billion.
• Without immediate action on Egypt’s debt, the economic situation will worsen rapidly and international investor confidence will continue to erode.

President Obama spoke about U.S. policy on Egyptian dept relief in a speech on May 19, 2011.  In it, the president stated that the U.S. did “not want a democratic Egypt to be saddled by the debts of its past.”  We at the Chamber share the president’s sentiment.  Resolving Egypt’s debt crisis will immediately bring dividends by enhancing badly needed international investor confidence in Egypt.  This in turn will stabilize capital flight from Egypt.

We at the Chamber remain deeply committed to ensuring that the business community is at the core of our regional effort to expand economic opportunity and growth, that has for too long eluded so many in the region.  The upcoming G-8 meetings under U.S. leadership provide an opportunity to address Egypt’s debt challenge and to facilitate action in resolving it.