News

‘Tough Measures Needed’ to Fix Egypt’s Economy, Says President Sisi

‘Tough Measures Needed’ to Fix Egypt’s Economy, Says President Sisi

Egyptian President Abdel Fattah al-Sisi speaking at a press conference. (i24 News)
Egyptian President Abdel Fattah al-Sisi speaking at a press conference. (i24 News)

Egypt needs “tough measures” to fix its battered economy, President Abdel Fattah Al-Sisi said at a leadership conference on Monday.

“The problem is whether public opinion is prepared to accept the measures which could be tough or harsh,” Sisi said.

The president went on to say that, nevertheless, “the next few days will see a lot of good news for the Egyptian people” and that Egyptians will “soon” be able to get their hands on dollars at a unified rate.

Egypt’s government is currently negotiating a USD 21 billion loan agreement with the International Monetary Fund, which will see through a number of measures to reform the economy.

Among the measures the government will introduce are subsidy cuts, the privatization of state-owned companies and tax reforms, including the value-added tax that has faced resistance in Egypt’s parliament.

In a bid to ease Egyptians’ concerns that the IMF is imposing “conditions,” Finance Minister Amr El-Garhy said in an interview on Tuesday that the loan “is to help realize the reforms Egypt has had in place years ago.”

Last week, Egypt’s Prime Minister Sherif Ismail said that the Central Bank Governor and the Minister of Finance are completing negotiations for an IMF lending program aimed at restoring economic stability. The deal is expected to be finalized by August of this year.

The Egyptian stock market opened with significant gains the day after the announcement and analysts said the IMF lending program will ease foreign investor concerns and help restore Egypt’s foreign currency deficit.

However, there are concerns that it may also result in further devaluation of the Egyptian pound.

Egypt has been struggling to regain its rapidly depleting foreign currency reserves since the ouster of Hosni Mubarak in 2011. In the five years since, Egypt’s foreign reserves have gone down more than 50 percent, from USD 36 billion to USD 17.546 billion as of last month.

Egyptian Found Dead in German Prison Committed Suicide: Foreign Ministry
Egypt's Grand Mufti Says Homosexuals are 'Sinners' But Harming Them is 'Unacceptable'

Subscribe to our newsletter


News

More in News

Egypt Pours €360 Million into Renewing Alexandria’s Tram Network

Egyptian StreetsMay 25, 2017

Egypt Bans 21 News Websites, Including Mada Masr, on Claims of ‘Supporting Terrorism’

Engy AdhamMay 24, 2017

Rights Lawyer Khaled Ali Released on Bail Pending Trial

Engy AdhamMay 24, 2017

Rights Lawyer and Former Presidential Candidate Khaled Ali Held Overnight Pending Investigations

Egyptian StreetsMay 23, 2017

Egyptian Authorities Demolish Ras Sudr Kiteloop Camp, Other Attractions For ‘Violating State Property’

Egyptian StreetsMay 23, 2017

ISIS Claims Responsibility For Manchester Arena Attack

Egyptian StreetsMay 23, 2017

19 Killed in ‘Explosions’ at Ariana Grande Concert in UK

Egyptian StreetsMay 23, 2017

Canadian Minister to Contribute to the Egyptian Educational System

Egyptian StreetsMay 22, 2017
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2017 Egyptian Streets. All Rights Reserved.