Egypt Economy Crisis: Muslim countries ‘implicated’ by giving billions of dollars, now the paupers want to take possession of Egypt’s properties, understand the game
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These Egyptian properties have so far been under the control of the country’s powerful army, which is economically very strong and has kept El Sisi in power. Its neighboring countries consider Egypt very important for regional stability and this is the reason why rich Arab countries have often given billions of dollars in aid to Egypt. Now both Saudi Arabia and UAE want returns for their money. Saudi Arabia’s Finance Minister Mohammad Al Jadan had recently announced at the World Economic Forum meeting that he is now going to change the lending policy.
Egypt’s foreign debt of $ 155 billion
The Saudi minister said that till now they used to do direct financial aid and deposits with no conditions attached. He said that we are now changing this and working closely with institutions like the IMF in this direction. After this attitude of Gulf countries, now Egypt has to take very tough reform measures to get loan from IMF. IMF has recently given him a loan of $ 3 billion. It is believed that this loan is also heavily influenced by the Arab countries of the Gulf.
Egypt has reached the shelter of IMF for the third time in the last 6 years. In the first quarter of the current financial year, there is an external debt of $ 155 billion. This is 86 percent of its total annual economic output. Egypt’s population is 106 million and it is currently struggling with currency crisis and record inflation. Earlier, the Gulf countries had promised last year that they would give $ 22 billion in financial aid to Egypt, which is also in trouble due to the Ukraine war. On the other hand, UAE says that they are standing in support of Egypt but our patience is being answered by repeatedly asking for money. Due to this the credibility of Egypt has also fallen. Egypt is strategically important and the Suez Canal under its control is the lifeline of the world.
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