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E L I T E
E L I T E V O L .1 I S S U E . 7 3V O L .1 I S S U E . 7 3

Egypt after the IMF: Between Economic

Independence and Financing Risks

Farida Horania- Economics- Third year

The International Monetary Fund (IMF) is an Egypt subsequently turned to the IMF
international organization that aims to finance more than once for financial support, but
countries to improve their economies in exchange the conditions imposed increased IMF
for some economic reforms. Egypt has experienced interference in the country's sovereignty

several IMF borrowing experiences, beginning in and affairs, such as the requirement to sell
the 1970s with the aim of stabilizing the economy stakes in Egyptian companies and banks
during the Sadat era. Several subsequent loans Furthermore, the reduction in subsidies on
followed, the most recent of which was in 2016, some products and the high prices due to
when Egypt signed a three-year, $12 billion rising inflation have angered the
economic reform program aimed at addressing the population. Egypt will certainly not
budget deficit, public debt, and stagnant investment. continue to borrow from the IMF, but
However, one of the most important conditions of what will happen after the end of its
this program, in addition to gradually reducing reliance on IMF loans? If Egypt decides
energy subsidies, was the floating of the Egyptian to stop relying on IMF financing, it will ELITE’s Seventh Anniversary (2018-2025)
pound, which meant that the value of the Egyptian gain financial and economic
currency fell significantly against the dollar. independence.

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