Down Means Up or Reverse Economics.
The government target was to cut external borrowings. Instead its blown it by 17% in the year to last June. Its about $US100 billion.
Gross domestic debt rose to 4.20 trillion Egyptian pounds ($260 billion). https://www.reuters.com/article/egypt-e ... SL3N27F4DU
For come countries that debt might be put into productive or job creation purposes but in Egypt it funds the bloated and deficit budget and keeps millions in remunerative sloth.The international markets know that its a rerun of the 1870's and in simple terms the conventional sovereign debt markets everywhere in the world are closed to Egypt and it raises its funds at a higher rate using more complicated mechanisms with greater risk to the borrower.
The fantasy that the debt might be substantially reduced by the sale of state assets is laughable and the sale program has stalled in first gear - or was it reverse gear.https://www.reuters.com/article/egypt-e ... SL5N2726CR The excellent Patrick Werr at his scathing but always understated best.
Given Egypt is in its 5th year of economic restructuring to find that debt is exploding is far from the IMF playbook.
Meanwhile $US60-80 billion is going into a new capital that will do little but protect the ruling class from dissent and the ugliness of the poor. It will also save them the vision of the chaos that 70 years of military dictatorship has created of Cairo. To assume that the same military cretins will create other than another eyesore defies logic with all betting that a class with a 100% historical failure rate will not reinvent itself in defiance of all that we know of human DNA.
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