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Professor of Economics: The IMF loan is a positive sign for the Egyptian economy and international confidence


Dr. Gamal Heikal, Professor of Economics, said that the IMF’s approval to grant a new loan to Egypt worth about $9 billion will have positive repercussions on the economy during the coming period, especially since the trust of the Fund and international institutions is a strong testimony to the national economy.

Gamal Heikal added to “The Seventh Day” that this confidence will re-inject new investments into Egypt, as an attractive and coherent market, and will remove some of the previous fears of the market situation, pointing out that the Bloomberg Foundation indicated this in a report confirming the desire of the international community to support Egypt.

Gamal Heikal explained that the loan, as usual, was accompanied by the traditional prescription of the International Monetary Fund, on top of which is the liberalization of the exchange rate. Despite its impact on inflation, which may be severe, it has become an urgent necessity, especially in light of the high difference between the official rate and the parallel market price. .

He added that the new social package that the government put forward to mitigate the effects of the expected inflationary wave was in order to help the poor groups in society, considering that the new loan may ease economic pressures during the coming year, but there is still a lot of effort required to compensate for the foreign resources gap during the coming year. The next three years, which requires more effort to improve the investment environment and overcome obstacles facing local and foreign investors.

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