Egypt’s accession to the membership of the New Development Bank… More borrowing, ruin and debt

In light of extended economic systems, afflicted by the upside-down regime of Sisi, who has exceeded the limits of bankruptcy, and his borrowing from foreign countries has become fraught with economic and financial risks, after his debts exceeded the safety barrier and began to swallow debts and their interests more than 100% of the national income.

And the foolish Sisi is in a dilemma, looking for someone to borrow from him or guarantee him with non-stop loans, so he is mortgaging the country’s assets to those who pay, which represents an unprecedented strategic threat to Egypt, which appeared recently during EgyptAir borrowing an amount of one billion pounds to repay its debts with the guarantee of the Ministry of Finance, Which represents a mortgage of the company’s assets to the banks financing the company’s loan, and it is a catastrophic scenario, which may bring the Ugandan scenario closer to the application in Egypt, where China seized the main Ugandan airport in exchange for debts that Uganda did not pay, which was previously talked about by the media close to the regime, Amr Adib, recalling that the matter It was happening in the days of Khedive Ismail.

What does membership of the New Development Bank mean?

Despite the debt disaster that Egypt suffers from, the Ministry of Finance announced yesterday that Egypt joined the membership of the New Development Bank (NDB), an international financing platform established by the BRICS grouping “Brazil, Russia, India, China and South Africa” six years ago, to finance infrastructure and sustainable development projects in countries that gather BRICS and other emerging and developing countries.

The capital of the bank is $100 billion, and it finances projects in the areas of: transportation, water and sanitation, clean energy, digital infrastructure, social infrastructure and urban development. .

Mait’s Lies

The Minister of Finance of the coup, Mohamed Maait, considered the decision to join helps meet Egypt’s financing needs, while the Deputy Minister for Financial Policies, Ahmed Kajouk, indicated that Egypt’s joining the bank comes within the framework of keenness to diversify sources of funding, which contributes to reducing the cost of providing financing needs for development projects. .

According to central bank data, Egypt’s total foreign debt at the end of last June amounted to $137.9 billion.

By the end of 2021, the figures show continuous increases in Egypt’s external debt in large proportions, as the Central Bank of Egypt figures showed that the country’s external debt rose by 14 billion and 300 million dollars during the fiscal year, which ended last June.

Unprecedented debt

Last June, the Central Bank revealed that Egypt’s total foreign debt amounted to 137 billion and 850 million dollars, compared to 123 billion and 490 million dollars in June 2020.

The bank’s statement, at the time, indicated that the external debt was divided into long-term debt of 124 billion and 100 million dollars, and short-term debt of 13 billion and 700 million dollars.

Experts point out that the last six months of the year witnessed rapid increases in the country’s external debt; This will become clear in the Central Bank’s statement at the end of the current fiscal year, which will end in June 2022.

Continuation of the debt policy

Observers fear, in light of these increases in external debt, that the government will continue to borrow at the same pace to pay off debts and their installments, and try to reduce the gap in the public budget and increase spending on projects whose economic feasibility is in doubt. This will result in a significant increase in burdens on citizens in 2022, in light of the government’s policies to place the greatest burden on them.

Foreign debts have jumped since Sisi seized power in mid-2014, when it did not exceed $46 billion at the time; This is as a result of his expansion in borrowing from abroad to finance projects that are still questionable in terms of their economic feasibility, such as the Suez Canal branch and the new administrative capital.


Source: بوابة الحرية والعدالة by fj-p.com.

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