Mubarak left this morning from Sharm-el-Sheikh hospital, where he was being treated for cancer, despite pressure from his lawyer to postpone the hearing. He arrived in court on a stretcher, accompanied by his sons, Alaa and Gamal, and by former minister Habib-el-Adli, already sentenced to 12 years in prison. "I am not guilty, I completely deny all charges," Mubarak said. Accusations of corruption and murder have been leveled at him, with more than 800 people killed and around 6 injured in the 18-day protest. If he is found guilty, Mubarak faces the death penalty.
The country's economy is collapsing at an annual rate of 4,2% and growth could slow to 1,6% this year and 2,6% in the next 12 months.
Egypt yesterday rejected the offer of the International Monetary Fund which proposed a loan of 3 billion dollars to stimulate the economy. The money could come in handy for Egypt and the IMF loan was offered with few restrictions attached. However, the military vetoed it, thanks to the support of the population, acquired with a strong media campaign.
The Fund had approved an economic policy program that, under Mubarak, has widened income inequalities and fueled this year's uprising, opposition leaders say. According to the Nobel laureate in economics Paul Krugman, the IMF has contributed to worsening the recession with the one-size-fits-all policy which plans to raise interest rates and reduce public spending - curious given that the economy advances usually found in recessions do the opposite.
On the other hand, IMF President Christine Lagarde said that since 2009 few measures have been taken for financing and the emphasis on structural changes has been reduced.
But Egyptian activists are well aware of the prudent macroeconomic policies implemented under Mubarak: by cutting debt and attracting foreign investment (such as the Vodafone group), Egypt grew 7% a year in 2008 – although it should be noted that these numbers hide a youth unemployment rate of over 20%.
The IMF is struggling to find clients in the region. Countries that have avoided borrowing from the IMF in recent years have terrible fiscal discipline. Egypt, on the other hand, has done the opposite: it has tightened its belt to be able to manage without the money from the Fund. He sold $504 million of 3-year bonds at a yield of 13,35%.
The streets of Cairo continue to fill with demonstrators for and against Mubarak. One of the organizers of the protests against the former dictator summed up the sentiment of Egyptian opponents “We will not tolerate a repetition of past economic failures. We will be much more difficult to please.” The IMF will have to take this into account.
Sources: Bloomberg, The world, Aljazeera
