Source: Egyptian Institute for Studies
Author(s): Abdelhafez Alsawy
Original Link: http://en.eipss-eg.org/corruption-egypts-financial-position/
Introduction
The Algerian foreign minister’s statement a few days ago about the financial situation in Egypt has not come from a vacuum. The Algerian minister, at a conference with Algerian businessmen, said: “Egypt is a country that spends all time seeking loans from the International Monetary Fund and others.” In fact, there is a very serious situation in Egypt’s debt policy, as Egypt preferred to take the easy way of borrowing rather than the difficult path of adopting a development project to avoid the risk of borrowing from abroad.
Some may view the comments of the Algerian minister in light of some outstanding issues between Egypt and Algeria, especially regarding the situation in Libya. But the truth is that Egypt is already suffering from a financial crisis and its financial situation is fragile despite the government’s claims of achieving progress both in the exchange rate stability (a), and the rise in foreign exchange reserves (b). However, these results (a & b) are temporary, in addition to the fact that a high price was paid on the economic and social levels on the other…
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