Austerity programs tailored in IMF to curb subsidies for the poor and thus to lower the pressure on the troubled economy of the state. And as electrical bills are climbing, gas prices are soaring and overall cost of living is jumping. Poor families and even middle class felt these measures very well. But was that helpful to control the debt?
Quite the opposite. Egypt’s foreign debt has risen more than 10% in less than a year. It was $88.2 billion in March and will reach even higher numbers with new national bank data.
It is fun to know that the billions were spent… to implement the economic reform program that includes slashing fuel and electricity subsidies, imposing a value-added tax and floating the currency. Some kind of magic: we have to borrow money to buy less food, for example. Foreign debt was $67.3 billion back to December 2016.