Egypt might go bankrupt in 6 months, ElBaradei warns

Egypt might face bankruptcy within six months, Egyptian reform advocate and presidential hopeful Mohamed ElBaradei warned on Monday.

During a meeting with labor leaders at the Center for Trade Unions and Workers Services (CTUWS) in Helwan, south of Cairo, ElBaradei attacked the "failing" policies of Egypt's ruling military council.

He criticized the Supreme Council of the Armed Forces (SCAF) for what he called incompetence and lack of experience, saying that experienced government officials don't have enough power.

Egypt is currently relying on its cash reserve with no gross domestic product, he said.

In September, the Central Bank of Egypt (CBE) said foreign reserves dropped US$697 million in August, a continuation of an eight-month downturn, standing at US$25.008 billion at the end of August.

Observers blame the drop in cash reserve on the intensive exit of foreign capital during the January revolution. Experts also blame the halt in Egypt's sources of foreign currency, such as tourism and exports.

ElBaradei urged SCAF head Field Marshal Hussein Tantawi to make the 6th of October celebrations an opportunity to adopt decisions that can held restore the public’s “seriously waning” confidence in the military council.

Prime Minister Essam Sharaf said on his Facebook page Monday that the January uprising has left a negative impact on economy.

Translated from the Arabic Edition

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