Egypt’s armed forces in December rejected government pleas to help ease the debt crisis despite holding more than Egypt’s total foreign debt in secret reserves, senior banking and government officials told Middle East Eye. The claims underscore mounting concerns over the opaque role of Egypt’s military in the economy at a moment of acute fiscal stress, as the government struggles to meet debt obligations amid shrinking foreign currency reserves and tightening domestic liquidity.  Egypt was expected to pay about $750m in loan repayments to the International Monetary Fund (IMF) by the end of December but failed to meet the deadline. As a last resort, it was agreed “in principle” for the instalment to be deducted from Egypt’s upcoming IMF tranche, with interest added, official banking sources told MEE. However, the precise terms of the arrangement remain unclear, with both the Egyptian government and the IMF keeping the details out of the public domain. “The government sought to borrow three trillion Egyptian pounds ($63.7bn) by December, but domestic banks refused, citing limited liquidity,” a senior banking official said, speaking on condition of anonymity for security concerns. “With no other borrowing options available, the government turned to the armed forces.” The official […]