The events that rocked the nation on Friday following the constitutional declaration by President Mohamed Morsy are a bad sign for the economic climate, according to analysts.
The CEO of Ridge Islamic Capital, Hamdy Rashad, said the decisions taken by Morsy are perfectly normal because the opposition is not giving him the chance to enact any change, especially as the old state structures remain. He confirmed that if the situation escalates, the International Monetary Fund (IMF) may review its stance regarding their loan to Egypt. Hamdy added “the people who oppose the IMF loan are not aware of the situation; they will oppose everything until they spoil everything.”
The deputy chairman of Prime Holdings and Investments (PRMH), Mohamed Maher, thinks that the decisions have divided society between Islamists and civil powers; they will have a negative impact on the political environment and thus the security situation.
Maher stated that the declaration raised many concerns, and may affect Egypt’s position and credit rating.
The head of the Arab Union for Direct Investment, Hany Tawfik, said the absence of a clear roadmap casts doubt on the government’s capacity to repay the loan even before the current events.
Public opinion is divided, the people who refuse the loan are concerned about the lack of a clear vision on how it will be used or repaid. “It’s my son who will repay the loan; so it must be used in a productive way,” Tawfiq said.
