IMF: Cure or poison for Egypt's economy?

Millions of Egyptians will most likely take part in the forthcoming presidential elections. Many of these voters feel the economic pressures as a result of spiralling prices, even more so after President Abdel-Fattah Al-Sisi took what many experts have described as the extremely courageous decision to carry out a package of economic reforms in keeping with the agreement Egypt reached with the IMF on 11 November 2016.

That agreement was “essential and unavoidable” in view of the economic circumstances that followed the 25 January 2011 Revolution and the overthrow of president Hosni Mubarak after 30 years in power.

Under the agreement, the IMF has granted Egypt a $12 billion loan in order to remedy “macroeconomic weaknesses, boost comprehensive growth and create job opportunities.” Towards these ends, the IMF “prescription” or “Extended Fund Facility” programme called for action along three focal areas: monetary, fiscal and structural reforms.