IMF loan to Egypt comes with conditions the will hurt ordinary Egyptians
The Egyptian economy has done poorly during the presidency of Abdel el-Sisi. The IMF is coming to the rescue with a three year loan package of $12 billion.
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|A Bloomberg article suggests that the loan is most likely to be good money thrown after bad. The loan is expected to be bolstered by further funds from Arab Gulf States. During the last three years, Egypt has received about $50 billion from Gulf supporters but the economy remains in the doldrums. The tourism industry has more or less collapsed and there is a lack of foreign investment. The amount of foreign currency just to supply imported basic needs for Egyptians now exceeds $80 billion.|
Egypt should invest in simple infrastructure such as roads, schools and water-supply systems; make it easier for small and medium-sized business to get bank loans; and break up the military-industrial monopolies in everything from washing machines to olive oil. It also needs to end the crackdown on civil society, and move toward a free and fair presidential election.Much of the economy is controlled by the army. El-Sisi is not about to allow any political freedoms that might threaten his power and that of the armed forces.