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Lending To Countries in Turmoil

February 26, 2011
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This is an interesting thought, something which I hadnt thought of before. The US lends a ton of money to Egypt, and if we can retard their economy and put them further into debt, we own them for longer.

A week ago, Credit Suisse estimated that the unrest had cost the country at least $310 million per day, and predicted the Egyptian currency would come under heavy pressure as investors shifted to dollar deposits or pulled their money out entirely. Those projections for economic growth this year were quickly revised down from 6 percent, to between 2 and 4 percent respectively.

The full article is here, and worth a read. If you dont have the time, at least read this:

In 2010, the EIB lent a record $3.5 billion to projects in the Arab region, making it the biggest provider of long-term financing there, Maystadt said. That being said, Maystadt admitted of the $11.9 billion allocated between 2008 and 2013, only about $3.8 billion is left, and they are ready to do more. The EIB invests in new enterprises, lending funds to small and medium-sized companies, as well as investing in new transport, energy and infrastructure for new developments. Typically, it raises money by issuing bonds, guaranteed by the EU against political risk. Current projects include Morocco, Tunisia, Syria, Egypt, the Palestinian Territories, Lebanon and Algeria, but has not been authorized to invest in Libya.

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