The Egyptian economy suffers more from debts due to the borrowing policies that the government and the president tout lately. More debt means next generation will not have good future and they will be burden by how to pay all of these debts back in the future.
The borrowing policies weren’t just from the international bank but also from the local banks. I can assure that the only people will get benefit from this debts are the rich people not the poor people.
The main Egyptian economic problem I believe is in the interest rate of the local currency. The interest rate of the local currency is very high and the only people get benefits of this high interest rate are the rich people.
If I’m rich and the local currency has an interest rate of 12.5% , why do I need to take the risk and invest when I can I have safe investment through putting the money in the bank and lock it for 3 years and get a lot of profits back from that interest rate.
When the government try to decrease the interest rate, I see a lot of articles attack that decision claiming that will have a great effect on the poor classes. Unfortunately, this is not true because poor people don’t have money in the bank to be worried about but in fact rich people who are worried about their easy profits from the bank.
In conclusion, I want to assure that the first step to decrease the national debt is to low the interest rate of the local currency by half at least that if we want to be save Egypt and next generations.