Egyptians Wary of IMF Loan

As Egypt’s economy falters, its government is trying to find relief anywhere it can. Officials say they are closer to securing a nearly $5 billion package from the International Monetary Fund, while recently announcing a $3 billion bond deal with Qatar.

As much as the foreign money is welcome, Egyptians worry about the lenders’ motives. Some see the IMF as too close to the interests of Egypt’s former government, and they view Qatar’s largess as prompted less by neighborly goodwill than by regional ambition.

Economist Magdy Sobhy Youssef of the Al Ahram Center for Political and Strategic Studies:

Youssef said it is normal for lenders or aid donors to have conditions that allow them to exploit the country they are helping, either through political concessions or the economy. He added that is as true for the West as it is for Qatar and other Gulf nations. 

But economists say Egypt has the potential to build itself up without selling itself out. It starts, they argue, with ending the stalemate in domestic politics that has put meaningful reform on hold.

Youssef said that to see the problem as something with only an economic solution will lead to failure. "What is needed," he added, "is political harmony between the government and the opposition."