IMF Emergency loans to Egypt : Time to watch how the money is used


The Egyptian National Action Group is troubled by the politically supportive tone held in the
statement by IMF Managing Director Kristalina Georgieva issued on April 26th, following the
regime’s request for emergency funds.

  • Although many independent observers criticized the catastrophic management of the
    COVID-19 crisis by the Egyptian regime, both in terms of actions and transparency, the IMF
    statement praises Sisi and the junta who “have responded quickly and decisively with
    measures to limit its spread and provide support to affected people and businesses”.
  • The IMF Managing Director adds further that “The Central Bank of Egypt has also
    implemented timely measures to support the domestic economy” a few days after the
    chairman of Daily News Egypt was arrested after an article had raised allegations of currency
    manipulation by the Central Bank of Egypt.
    The Egyptian National Action Group regrets that the IMF shows such a clear lack of independent
    information about the reality of the economic, social and sanitary situation of Egypt. We call for
    the IMF to listen to other voices than the regime’s, to watch much more closely how their funds
    have been used so far and to realise that their money has mostly funded corruption and the military
    economy but certainly not the real economy and the private sector.
    Also, despite the billions injected by the IMF, the EU or the Gulf countries, Egyptians are poorer by
    almost 20% and 6 Egyptians out of 10 are considered as either poor or vulnerable by the World
    Bank itself. Due to the IMF reforms, the most destitute can no longer rely on State subsidies for their
    basic needs.
  • How will the IMF make sure that these emergency loans will truly serve the Egyptian
    population?
  • How will the IMF make sure that none of this money will go into Sisi or some generals’ bank
    accounts?
    As a reminder, the 2016-2019 IMF program in Egypt aimed at “restoring macroeconomic stability
    and return Egypt to strong and sustainable growth.” including “bringing down the budget deficit and
    government debt”. However, in 2013, Egypt’s external debt was USD 43 Billion. It has now reached
    more than USD 110 Billion.
    The Egyptian National Action Group
    29 April 2020

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