Express analysis | The black hole of the Egyptian debt
In Egypt there is a “new republic” under construction, as the abdelfatá government to the SISI, which translates into impressive infrastructure and especially a new capital that is built a decade in the middle of the desert, and that has become the star macroproject of the Executive. These impressive transformations have been possible thanks to a perennial as in the sleeve: debt. In the last decade, the SISI government has found in it a quick source of income that has allowed it to cement its authority.
Since 2014, the year in which the president formally assumed his position, the foreign debt has shot at $ 46 billion (40,132 million euros) to almost 153,000 million dollars (130,000 million euros) of June 2024. One third of this has contracted with multilateral institutions, such as the International Monetary Fund and the World Bank, followed by bilateral lenders from among those who stand out among those that stand out. United Arabs and, increasingly, China.
Most of this debt has not been assigned to social services, or productive economic sectors, or to increase the reserves of the Central Bank, but to cover huge budgetary deficits, finance these infrastructure megaprojects, maintain for years the value of the currency attached to the dollar, buy weapons and, over time, pay previous debt.
The over -indebtedness of countries is one of the greatest obstacles to the development of numerous countries that pay more in debt interest than what they invest in health or education. In the Seville conference, new rules are intended to set for these liabilities to contract and reimburse more fair, responsible and supportive.
