Al-Sisi begins his third term as president, supported by a $50 billion rescue plan Economy

The Egyptian President led Abdel Fattah Sisi She was sworn in for a third term with growing expectations for widespread changes after a $50 billion international rescue plan prevented the worst economic crisis the country has witnessed in decades, according to Bloomberg.

Al-Sisi was sworn in yesterday, Tuesday, to extend his rule until 2030. The ceremony was held in the New Administrative Capital, east of Cairo (one of the mega projects worth billions of dollars that critics say has contributed to the suffering of… Egypt From the crisis of foreign currency scarcity.

Challenges

Al-Sisi (69 years old) said before Parliament: The world faces increasing economic, scientific and political challenges that require Egyptians to be proactive “because we are in a race against time,” he said.

The former defense minister turned statesman won the presidential elections that took place in December, which did not witness much competition, with 89.6% of the votes (according to Egyptian official sources), at a time when Egyptians are concerned about the record rise in costs. living, amid fears that the effects of the Israeli war may extend to… Gaza strip And the mass displacement of Palestinians to Sinai peninsula in the country.

Bloomberg reported that a major economic transformation has occurred since then, with an infusion of funds (led by a $35 billion investment pledge from the UAE in a project The head of wisdomfollowed by renewed support from International Monetary Fund AndEuropean Union AndThe World Bank) Sisi gave the possibility of a new beginning.

The agency adds that it remains to be seen whether the government will remain committed to reforms linked to some aid, such as enacting spending cuts and limiting the large role the state plays in the economy, including the military.

On March 6, the authorities allowed the Egyptian pound to fall by about 40%, which would secure the IMF package but increase pressure on the country’s population of more than 105 million people, and the currency has made small gains since then.

Decisive steps

After confirming the IMF’s $8 billion in aid last week, the Fund’s Director General, Kristalina Georgieva, warned that due to “sustaining the transition to a liberalized foreign exchange regime, maintaining tight monetary and fiscal policies, and transparently integrating off-budget investment into macroeconomic policy decisions.” “Decision making will be critical.”

Sisi pledged to adopt a “comprehensive institutional reform” that would rationalize public spending, build revenues, and move toward “more sustainable paths of public debt.” He added that the authorities would move forward with their plans to make Egypt a regional center for trade, transportation, and renewable energy, and work to maximize the role of Suez Canal.

Traffic through the vital waterway has declined dramatically this year after the attacks Houthi group Yemeni on ships in The Red SeaSupporting Gaza, which is subjected to Israeli aggression.

Bloomberg quoted former Deputy Prime Minister Ziad Bahaa El-Din in an article in the Cairo-based Al-Masry Al-Youm newspaper, saying that the recent deals and loans in Egypt “were required and necessary financial solutions that were taken despite their social cost.. What we are waiting for is the transition to programs capable of stimulating the economy.” “So that there is hope not to repeat the same policies and commit the same mistakes.”

Sisi defended the government’s economic policies while acknowledging the difficulties in a country where 70% of families depend on some form of government support.

He urged Egyptians to be patient, saying that building what the authorities called the New Republic (a large-scale concept that includes massive new infrastructure as well as the development of historically neglected areas) requires sacrifices from everyone.