Egypt weakened by the sharp drop in revenue from the Suez Canal, in the midst of a crisis in the Middle East

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This fall is attributed to repeated attacks by Yemeni Houthi rebels against commercial ships in the Red Sea and the Gulf of Aden, pushing shipowners to bypass Africa via the Cape of Good Hope. Consequence: a net loss of 60% of revenue for the famous crossing point through which approximately 12% of world traffic usually passes.

The Suez Canal represents a key source of foreign exchange for Egypt, which is going through the worst economic crisis of its history. This loss of income aggravates the country’s difficultiesdeprived of a crucial windfall to repay its external debt, estimated at nearly 165 billion dollars. The Egyptian pound reached its lowest level a month ago.

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IMF releases $1.2 billion for Egypt

To respond to this crisis, the International Monetary Fund (IMF) announced on Tuesday, December 24, that it had concluded an agreement with theEgypt aimed at unlocking $1.2 billion in new financing. This financial support for the Arab world’s most populous country is part of a broader program intended to stabilize a struggling economy.

“ Egyptian authorities have continued to implement key policies to preserve macroeconomic stability, despite ongoing regional tensions leading to a sharp decline in Suez Canal revenues. said Ivanna Vladkova Hollar, head of the IMF delegation in Egypt.

She also stressed the importance of reforms to “ provide additional room for maneuver to increase social spending, particularly in the areas of health, education and social protection. »

However, this financing remains conditional on the approval of the IMF board of directors.

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