IS ANYONE FOLLOWING THE TRUTH OF THIS ANDALUSION FALL?
In the two years since the January 25, 2011 revolution, Egypt’s economy has severely deteriorated. In recent weeks, figures have been published testifying to the depth of the crisis. On December 31, 2012, the Egyptian finance minister said the country needed $14.5 billion within the next 20 months, and that its revenue was sufficient to cover only 60% of its expenses.
On December 27, 2012, the value of the Egyptian pound against the U.S. dollar dropped to a low not seen for years, only days after Egypt’s credit rating was downgraded. Moreover, the Central Bank of Egypt has warned that the country’s foreign currency reserves have bottomed out, while the Egyptian government press has published data reflecting a significant decrease in the number of tourists to Egypt in 2012. In yet another indication of the economic crisis, a 22-year-old youth from the Beni Suef governorate recently self-immolated after failing to find work.
In an effort to overcome the economic crisis and to cover the deficit in Egypt’s 2013 state budget, the government has been negotiating a $4.8 billion loan from the IMF in recent months. However, in December 2012, the government decided to freeze the negotiations until after the constitutional referendum, fearing the public response to an increase in taxes as stipulated in the loan agreement. Negotiations resumed following the referendum, and on January 7
MEMRI Daily: January 11, 2013