Government executive loans are widely seen as an important way for Egyptian citizens to fund their retirement and other expenses, but many say they are often issued to wealthy families and individuals.
The new Egyptian government’s plan to renegotiate debt payments to Egypt’s private sector is a sign that it is now considering loosening some of those rules.
But while the changes may be welcomed by the wealthy, it will also mean some of Egypt’s most vulnerable citizens are left in the lurch.
Egyptian officials say the new government’s proposed reforms will not affect ordinary Egyptians who are in debt to private creditors, but they will be affected if the private sector defaults on loans, or if the government does not keep the payments due.
Many Egyptians have faced financial hardship, and many are concerned that the new debt restructuring will hurt their personal finances.
“The private sector debt is growing exponentially and we’re facing severe economic and social challenges,” said Mohamed Al-Jumail, a businessman who has been facing debt since 2013.
“The debt restructuring could put an end to my life.”
Al-Jameel, who said he had been unable to pay his debts for the past six years, said he was “very concerned” about the reforms.
“My life is not in a very good position,” he said.
“I am afraid the government will change my life.
The plan to reorganise the government debt will mean that my family and my friends won’t have the money to pay for basic necessities.”
Many other Egyptian businessmen are also worried about their personal financial situation, and they say the government is taking the wrong approach.
“If they want to make this debt restructuring as good as possible, they should pay the money back, not give it back,” said Mohammed Saleh, a business owner.
“If they give it away to the private companies, the companies will pay it back.”
“I am a business man, and I want to support my family,” said Saleh.
“We can’t give them more than this.”
But the private lenders’ demand for greater debt relief has also sparked fears of an economic meltdown.
The government is offering its private sector borrowers a new loan of up to $1 billion.
But if the debt is not paid, it could trigger a debt default and trigger the collapse of the economy, which is expected to be worse than it was in 2014.
More than 4 million Egyptians are currently facing debt.
For many Egyptians, the idea of having their debts restructured is too painful.
“I think this debt is the worst thing that could happen to Egypt,” said Al-Razzaq, a middle-aged man who was forced to take out a loan from his bank to pay the bills of his wife and children.
If Egypt’s public sector is allowed to default on loans it may lead to a financial collapse.
Egypt’s financial sector, which includes the private banking sector, banks, financial institutions and insurance companies, is the largest in the world. “
This is a really dangerous situation, I don’t think we can go through this again.”
Egypt’s financial sector, which includes the private banking sector, banks, financial institutions and insurance companies, is the largest in the world.
The country’s economy is heavily dependent on its tourism industry and its oil exports.