Nobody knows what the IMF delegation will say or decide about Egypt, or whether they will approve the second tranche of the loan or ask for more reforms. If the government didn’t implement what it had agreed to, the IMF might freeze the next loan tranches, which would destabilise Egypt once again, Tawfik noted. Moody’s projects that Egypt’s fiscal deficit will decrease to 11% of its GDP in FY 2017 and 8.5% in 2019—down from 12.6% in 2016. Worries about the high debtThe managing director of Multiples Group, Omar El-Shenety, has different thoughts regarding the increasing foreign debt. He stated that the IMF expects the foreign debt of Egypt to exceed $100bn by the year 2020.

Source: Daily News Egypt April 27, 2017 06:00 UTC