As the IMF smiles and looks on, Egypt decides to take the International Monetary Fund’s $3 Billion dollar loan.The news of the loan comes just days after the finance minister announced the country’s first post-revolution budget proposal, raising taxes on corporations and investors and increasing government spending. There is also talk of working in a 26% spending increase on subsidies on essential commodities. Somehow, this all comes as no surprise.
The socialist model of doing things allows Egypt to take from the rich business people, the only ones who create employment and make things happen, and give to the poor with impunity. The IMF praises the budget proposal and stands in the wings to help Egypt with a small 1.5% interest loan to be paid back over 5 years. If the IMF did not have such a poor record of dragging down every country it lends to, it’s terms sound like it possibly might work for the U.S. Housing market.
The conditions of the IMF loan are designed for improving the living standards of the poor of Egypt and the IMF feels uneasy about levying harsh loan requirements on the struggling country, only wanting to improve the living conditions of all Egyptians. Egypt found it needed the Bank’s help after it propped up its currency during the Mubarak uprising and subsequently found itself short.