27.06.2011 25.Siwan, 5771
IMF – Ägypten:
By rejecting IMF loan Egypt risks undermining economy
Egyptian FM Samir Radwan changes position on IMF loan: "We do not need to go at this stage to the Bank and the Fund."
Egypt’s decision to reject loans from the International Monetary Fund (IMF) and World Bank may save the government unwelcome political controversy at home, but it risks undermining the country’s already severely strained economy, economists warned.
The terms of the IMF financing as well as the government’s plan to substitute it with lower spending and domestic borrowing remain murky. But economists said that without IMF help Egypt would almost certainly be saddled with higher debt costs and inflation. Furthermore, private business will now have a harder time raising capital for its own investment needs….