Alba Onofrio Queer feminist theologian, Soulforce, Chrissy Stroop Writer, commentator and senior research associate with the Postsecular Conflicts project, University of Innsbruck, Austria, Join us for a free live discussion on Thursday 8 October, 5pm UK time/4pm UT/12pm EDT. As the Chief Global Strategist at Morgan Stanley declared last August, Egypt witnessed “the best reform story in the Middle East, perhaps in any emerging market”. Having delayed a deal in Q4 2106 due to market volatility following the US election result, the Arab Republic of Egypt announced a five-day global investor roadshow on 13th January, covering key accounts in Abu Dhabi, Dubai, New York, Boston, Los Angeles and London, and where it had the opportunity to meet with well over 100 investors. Finally, section five presents the case study of International Monetary Fund (IMF) loan to Egypt. CASE STUDY: Egypt Roars Back After Reforms, IMF Loan with US$4bn Eurobond . The deal is a testament to renewed confidence in Egypt and its willingness to stick with important, albeit often unpopular, reforms, and secure the support of global multilaterals and its GCC neighbours. This is because when he took the lead, he had promised that he would work in ensuring that the economy had been improved. “Neoliberalism: Oversold?” was the headline of one 2016 report. The IMF three-year agreement with Egypt is a $12 billion loan ‘to restore macroeconomic stability’. IMF research has tilted toward recommending looser fiscal policies for countries that can afford it. View Case Study 4.docx from ECON 310 at Beaconhouse School System. It is quite interesting how the recent economic success in Egypt is associated with a substantial increase in people living under the national poverty line. The high yield on Egyptian government bonds - promoted by the IMF and investment banks’ praise for the Egyptian economy - was a direct result of the aforementioned inflation and currency flotation. Historically, in times of trouble, the oil-rich Arab states of the Persian Gulf had loaned foreign currency to Egypt at low interest rates, but a collapse in oil prices had left those states financially strained, and loans were not forthcoming in an indication of the depth of Egypt's problems, while the official exchange rate of the Egyptian pound was pegged at 9 pounds to the US dollar, the black market rate had soared to 18 pounds to the dollar In mid-2016, with its foreign exchange reserves being rapidly depleted, the Egyptian government applied to the IMF for a loan. We have not seen such praise for austerity policies in Greece or Spain with the economic and social hardship that followed, especially the massive rise in youth unemployment rates. The Egyptian pound had a firm rate relative to foreign currencies due to which the business activities in the country were decreasing. 2 0 obj And in the meantime, the impact can be quite severe.”, Read More: Ecuador reverses fuel hikes after days of violence. We may wonder, then, what economic success means to a Global South economy in the eyes of the IMF and western media. such measures? Although austerity measures are not always blamed, poverty and rising inequality in the west are now at the forefront of academic debate and under the lens of mainstream Western media, political parties, and even international organizations including the IMF. Egypt and the IMF.docx - Running head EGYPT AND THE IMF 1 Egypt and the IMF Student\u2019s Name Course Name Professor\u2019s Name Date EGYPT AND THE IMF 2, The root cause associated with the economic problem in Egypt is the leadership of, President Abdel Fatah al-Sissi. The IMF program, as normally is the case, is one of the major sources of instability in Egypt, though not the only source. The minister noted that the “obstacle is that fruits of the economic reform were not captured by ordinary people”. Read More: Rare protests in Egypt trigger a market rout. The research investigates the controversial nature of IMF conditionality with a case study of Egypt. IMF Lending Case Study: Ghana. The IMF, World Bank, Bloomberg, and Financial Times, alongside big investment banks such as Morgan Stanley, are celebrating Egypt’s economic success. <> November 3, 2016. #BondsLoans24 - Managing oil and gas in an age of uncertainty, ESG & Capital Markets Africa 2020 - Virtual Conference (click here to view the agenda), Project Finance & Capital Markets Latin America 2020 Virtual. The Arab Republic of Egypt started 2017 with a bang, pricing an upsized US$4bn triple-tranche bond that is currently the largest single issuance out of Africa to date. As a result, “the programs rarely get a buy-in from the general public,” he said. No,” said Mazarei, now at the Peterson Institute for International Economics. x��]o�F�=@��Ta��.�A�I�kr�5W�p@�>�m�␪(�������%��V�]893;;;߳������e������r�+�U��>]ܶ��.n�mꋏ�ú)w붹�����яu����_Go~x��}���E�%��n�_�`Q This is because when he took the lead, he had promised that he, would work in ensuring that the economy had been improved. Saudi Arabia even credits the Fund for delaying a plan to balance the budget that would have squeezed growth. © 2003-2020 Chegg Inc. All rights reserved. Now, almost one third of the population is below the national poverty line. By mid-2016, this commodity was in short supply due to the inability of Egyptian traders to get the foreign currency required to pay for imported sugar. CAIRO – 5 August 2020: The International Monetary Fund (IMF) expected Egypt’s losses in tourism revenues to exceed 2 percent of gross domestic product (GDP) during 2020 due to COVID-19 crisis. What impact did it Explore what’s moving the global economy in the new season of the Stephanomics podcast. The Fund’s $12 billion loan helped avert a crippling dollar shortage and lured billions into local-currency bonds. Before it's here, it's on the Bloomberg Terminal. The Arab Republic of Egypt started 2017 with a bang, pricing an upsized US$4bn triple-tranche bond that is currently the largest single issuance out of Africa to date. In a real sense. For the 30-year tranche, about 49% was allocated to accounts based in the Americas, 45% Europe, 2% Middle East and Africa, and 4% Asia.