Egyptian President Abdel Fattah al-Sissi warned on Sunday that while regional “challenges” were creating “unbearable” economic pressure for the country’s population, ongoing reforms under an International Monetary Fund (IMF) loan ) should be “reexamined”.
Egypt, the most populous Arab country, is crushed by its external debt — nearly $165 billion — and is currently going through the worst economic crisis in its history, suffering from an increased need for financial aid in a context of galloping inflation.
Its economy is suffering from a series of shocks linked to the context of the war in Gaza, such as the attacks by Yemeni Houthi rebels on commercial ships they consider linked to Israel in the Red Sea and the Gulf of Aden, which reduce revenues from the Suez Canal.
“If these challenges lead us to exert unbearable pressure on public opinion, the situation must be re-examined with the IMF,” Sisi said at a world congress in Cairo on population, health and human development. .
The IMF granted $5 billion in additional loans to Egypt in March, following a $3 billion loan at the end of 2022.
In return, the Fund demanded far-reaching reforms, including the adoption of a more flexible exchange rate, plans to strengthen the role of the private sector in the economy, as well as the fight against high inflation and public debt.
Egypt “undertakes this program [de réformes] in very difficult regional and global circumstances,” which “must be taken into account,” Mr. Sissi said on Sunday.
“We have lost 6 to 7 billion dollars in the last seven, eight or 10 months,” he added, referring to the Houthi attacks.
The Egyptian president’s statements come two days after authorities announced further increases in fuel prices of up to 17%, the third increase this year.
During successive devaluations since 2022, the Egyptian pound has lost two-thirds of its value.
Cairo has already received three tranches of the loans from the IMF, which said in early October that its next review mission regarding the next disbursement, initially scheduled for September, “is expected to take place in the coming months.”
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