Why did the IMF statement outrage Egyptians?

The International Monetary Fund’s announcement of the need for the Egyptian government to “make decisive progress” in fiscal and structural reform has caused widespread debate on social media sites in Egypt, with tweeters criticizing what they described as the mismanagement of the Egyptian government, which, according to them, has led to high inflation, while others praised the Fund’s reference to “maintaining the Egyptian economy”, despite the negative fallout from the coronavirUS.

The Fund’s statement, which comes as the Egyptian Government seeks to obtain a new loan from the Fund, has opened up a renewed debate about recourse to the Fund’s indebtedness and the usually accompanying conditions which, in some’s view, weigh heavily on Egyptian citizens.

What is the Monetary Fund’s statement?

The International Monetary Fund (IMF) announced that the Egyptian government needs to take further steps to enhance the competitiveness of the Egyptian economy, raise the private sector’s contribution, as well as improve governance and reduce the role of the state, in case the country wants to obtain a new loan.

According to the Fund’s assessment of Egypt’s recent loan programme in 2020, the Fund confirmed that the country’s economy continues to suffer from a high public debt burden, debt servicing and financing requirements.

The fund also lowered its forecast for the growth of Egypt’s economy during the current year from 5 percent to 4.8 percent.