European public banks must disengage with Egypt’s military junta

In light of the violence against civilians on the streets of Egypt today, CEE Bankwatch Network is requesting that the European Investment Bank and the European Bank for Reconstruction and Development immediately cease discussions and negotiations with the Egyptian government and authorities on all levels about potential financial involvement in the country until the Supreme Council of the Armed Forces (SCAF) cedes power to civilian leaders, the country has a legitimately-elected civilian government in control of the army, and military trials come to an end.

In spite of repeated warnings from local and international civil society groups [1], the two European institutions have rushed into cooperation with the SCAF-controlled interim government, without a legitimate civilian government first in place. While the EIB and EBRD are mandated to promote democracy in Egypt, they have collaborated for the last year with military rulers “guilty of abuses in some cases worse than those committed under Hosni Mubarak.” [2]

At the same time as the Egyptian military was ruthlessly imprisoning activists for simply expressing discontent with the political situation in the country, the EBRD organised together with the interim government a conference in Cairo on investment opportunities in Egypt [3]. During the October 26 event, Jonathan Charles of the EBRD declared that as long as “Egypt remains committed to democracy” the EBRD „will continue to be supportive” and have a lot of policy dialogue with the current leaders. [4]

Bankwatch International Affairs Director Petr Hlobil says, “With over 30 people now dead in the streets of Cairo at the hands of the military council’s security forces, it is impossible for the EIB and EBRD to still claim that the Egyptian leadership is committed to democracy. It is time for the two banks to withdraw from the country until a civil government is in place and acknowledge that it was a mistake to recklessly and hastily engage the military junta.”

For more information, contact:

Petr Hlobil
International Affairs Coordinator
CEE Bankwatch Network
petrh AT bankwatch.org
+420-603 154 349

Notes for the editor

1. See Bankwatch and Counter Balance press release: https://bankwatch.org/news-media/for-journalists/press-releases/keep-european-public-banks-out-mediterranean-region-say-ng

and Arab NGOs statement: https://bankwatch.org/news-media/for-journalists/press-releases/civil-society-groups-arab-region-say-western-financial-aid

2. Read Amnesty International study: http://www.amnesty.org/en/news/egypt-military-rulers-have-crushed-hopes-25-january-protesters-2011-11-2

3. Description of conference on EBRD website: http://www.ebrd.com/pages/news/press/2011/111024b.shtml

4. Read more statements from the EBRD during the conference: http://www.thedailynewsegypt.com/banking-a-finance/ebrd-ready-to-work-with-civilian-democratic-government-in-egypt.html