Egypt wins approval for $12bn loan from the IMF

[Frogman]

I understand what you're saying but it baffles me that you don t understand that it puzzles the mind that Egypt can spend billions of $ on military hardware with such an atrocious economic situation.

A drastic decrease in military spending while the region and the country is surrounded by threats would be somewhat peculiar especially for a military that is supporting deployments abroad and is involved in active operations inside Egypt.

This should shed more light in terms of actual figures and as you can see the budget has fallen relative to GDP post the 2011 revolution and is still stuck under the 2% mark.

 

[flamer84]

A drastic decrease in military spending while the region and the country is surrounded by threats would be somewhat peculiar especially for a military that is supporting deployments abroad and is involved in active operations inside Egypt.

This should shed more light in terms of actual figures and as you can see the budget has fallen relative to GDP post the 2011 revolution and is still stuck under the 2% mark.

View attachment 351767

Dude,these numbers just don't matter when you have to borrow 39 billions $ just to break even into the budget.And no,you don't need Rafales,you don't need Mistrals,you don't need Gowinds,you don t need FREMMS,you don t need Mig 29's to deal with terrorists in the Sinai ,the terrorists in Libya or with the feable Ethiopian military.

 

[Frogman]

Dude,these numbers just don't matter when you have to borrow 39 billions $ just to break even into the budget.And no,you don't need Rafales,you don't need Mistrals,you don't need Gowinds,you don t need FREMMS,you don t need Mig 29's to deal with terrorists in the Sinai ,the terrorists in Libya or with the feable Ethiopian military.

So we should forgo military spending altogether suffer a decrease in capability as obselescence eats away at a military which protects perhaps the world's most important waterway and EEZ? You're simply being ridiculous.

This isn't even going into the potential disruption to the conventional military balance in the region and yes that does mean the IDF.

It's simple really, 80% of the governement's budget is spent on subsidies, public wages, and debt payments while the rest is spent on everything else. It is that 80% which causes the governement borrowing not the other way round. How will another cut to military spending change any of Egypt's economic problems? It isn't its root cause nor would the cut signigicantly change defecit which actually currently stands at 8.9% percent due to austerity measures and increases in revenue.

 

[flamer84]

So we should forgo military spending altogether suffer a decrease in capability as obselescence eats away at a military which protects perhaps the world's most important waterway and EEZ? You're simply being ridiculous.

This isn't even going into the potential disruption to the conventional military balance in the region and yes that does mean the IDF.

It's simple really, 80% of the governements budget is spent on subsidies, public wages, and debt payments while the rest is spent on everything else. It is that 80% which causes the governement borrowing not the other way round. How will another cut to military spending change any of Egypt's economic problems? It isn't its root cause nor would the cut signigicantly change defecit which actually currently stands at 8.9% percent due to austerity measures and increases in revenue.

You can't afford the military you want .Simple as that.You can t match the IDF when you just borrow HALF of your state budget...Let that sink in...HALF

You will be bankrupt in 2-4 years.You heard it here first.

 

[Frogman]

You can't afford the military you wan't .Simple as that

K

 

[flamer84]

@Vergennes

These f####s are going to face economy meltdown and starvation and they'll board dingies to Europe in numbers,starting 2018.You just can t survive with these economic numbers.

I'm calling it here first.Frame this post,it will be just as bad as Syria,even without a war.

 

[The SC]

Dude,these numbers just don't matter when you have to borrow 39 billions $ just to break even into the budget.And no,you don't need Rafales,you don't need Mistrals,you don't need Gowinds,you don t need FREMMS,you don t need Mig 29's to deal with terrorists in the Sinai ,the terrorists in Libya or with the feable Ethiopian military.

And what do you need to deal with the F-35 and the Dolphin submarines carrying cruise missiles with nuclear warheads..Obviously you are not current with the Egyptian situation.. they don;t have only the terrorists to deal with, their flanks, a.k.a Libya, Syria and Iraq are all in some bad situations and Egypt has to compensate for that,, for its own security..

You can't afford the military you want .Simple as that.You can t match the IDF when you just borrow HALF of your state budget...Let that sink in...HALF

You will be bankrupt in 2-4 years.You heard it here first.

You want to sound better than the Egyptian economists and he IMF economists.. you do not make any sense in your posts. just hatred and looking down on some civilizations who have survived for thousands of years..
Where was Romania during the Egyptian civilization times.. did it exist?
Add to your knowledge that Egypt is building a totally new city worth more than 40 billion dollars and other mega projects worth another 60 or 70 billion $, it is your mind that is poor not Egypt..
Did you know that the richest people still borrow money.. because the interests they make with their investments is much more that the loan interests?

 

[Thəorətic Muslim]

If you say so.The 12% struck me,in my country everyone is shocked and it's raving that next year we might have 3% budget deficit.....

@Frogman is right. Egyptian subsidies are on food (2nd) and gas/electricity(1st).

Back in 2012 90% of the deficit was from subsidies. Which might not be so bad if they were efficient, meaning they corrected course on existing inefficiencies. The poverty rate of 26-29% of $1.25, going to 40-45% if it's $2. And high inflation in the Basket of Goods. Reducing the subsidy will bring about even more hunger.

There's a correlated link between food subsidies and political/social stability.

Read Page 20.
http://publicspherejournal.com/wp-content/uploads/2016/02/05.egypt_.pdf

There just hasn't been a concentrated push to fix the economy. Only temporary bandages to keep it chugging along and enough electricity to blame the Zionists and CIA on televisions.

 

[Baybars Han]

@Vergennes

These f####s are going to face economy meltdown and starvation and they'll board dingies to Europe in numbers,starting 2018.You just can t survive with these economic numbers.

I'm calling it here first.Frame this post,it will be just as bad as Syria,even without a war.

Nobody is going to go to sh... romania so why you worrying. Your country is a s.... Hole. I've seen it with my own eyes. In 2009 Bucharest roads was worse than my villages lol.

 

[Madali]

1.7% of GDP on military spending is nothing, compared to how volatile the region is. If anything, the government would have to put military at the forefront for now, because trying to fix the economy could mean cutting down on subsidies which could push certain elements into criminal extremism, which means Sisi would need a strong military to safeguard his country.

Economics is not that simple.

For example, look at this data from 2012,
http://www.nationmaster.com/country-info/stats/Economy/Budget-surplus/+-or-deficit/--#amount

Notice Britain has a budget deficit of 8.2% of its GDP. It's military expense in 2015 was 1.9% of its GDP.
http://data.worldbank.org/indicator/MS.MIL.XPND.GD.ZS

So, is UK going to turn to Syria in a few years?

I'm not saying Egypt's future is stable or not, I have no clue. But I don't think it's the military expense that is Egypt's real economic problem. Their problem probably is that they are 80 million population with a huge history but they have done **** all, in terms of economic progress, in the last few decades.

 

[c-dome1]

Dude,these numbers just don't matter when you have to borrow 39 billions $ just to break even into the budget.And no,you don't need Rafales,you don't need Mistrals,you don't need Gowinds,you don t need FREMMS,you don t need Mig 29's to deal with terrorists in the Sinai ,the terrorists in Libya or with the feable Ethiopian military.

they dont pay for all this gulf states pay for this

 

[c-dome1]

egypt will never can give back this loan

Take into account that the military budget isn't even 2% of Egypt's GDP and that Armed Forces procurements traditionally occur over five year cycles which means that the total spend is relatively insignificant.

The loan itself means we're on the right track in terms of economic reform and bouncing back after five years of political crisis.

militery budget is more when army control 40% of economy

You can't afford the military you want .Simple as that.You can t match the IDF when you just borrow HALF of your state budget...Let that sink in...HALF

You will be bankrupt in 2-4 years.You heard it here first.

the gulf cvountires pay for all the militeris puarche

 

[Frogman]

egypt will never can give back this loan

Egypt does not have a history of defaulting on any of its debts or even restructuring them. Egypt will have no problem paying back the loan and it wouldn't have been granted by the IMF if that was the case.

Egypt's Credit Rating currently stands at B- with a stable to positive outlook.

militery budget is more when army control 40% of economy

Baseless and impossible by any standard.

the gulf cvountires pay for all the militeris puarche

They don't and there's no source that points to this. No paper trail either.

Can you please stop being obsessively retarded.