In a recent report from an Israeli news source, it’s claimed that the Netanyahu government has made an intriguing proposition to Egypt. The offer reportedly involves Egypt accommodating Palestinian refugees displaced by Israel in exchange for substantial debt relief through the World Bank.
As detailed in the report from Israel’s Ynet website, previous attempts by Tel Aviv to persuade Cairo to open its doors to these displaced Palestinians had met with rejection. However, the Netanyahu government is said to have extended a fresh offer to President Sisi’s administration.
According to the allegations, Israel has pledged that if Egypt agrees to accept up to two million Palestinian refugees, the World Bank would facilitate the reduction of a significant portion of Egypt’s daunting international debt. Egypt is currently grappling with economic challenges, including a shortage of foreign exchange reserves.
PREVIOUS DEBT RELIEF FOR EGYPT
Egypt’s government is facing a precarious situation, ranking second only to Ukraine in terms of the likelihood of defaulting on its debt payments. The country is experiencing a significant loss of revenue due to substantial interest payments.
Debt forgiveness as a diplomatic tool isn’t new. The United States has previously utilized this strategy to align Egypt with its foreign policy goals. In 1991, the U.S. and its allies cleared half of Egypt’s debt in exchange for Egypt’s participation in the coalition against Iraq during the Second Gulf War.
Additionally, Egypt had previously turned down offers to temporarily house Palestinians within its borders during military operations conducted by Israel against Hamas in the nearby Gaza Strip.”
Source: politurco.com
