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Qatar Cuts Egypt Loose as Financial Picture Darkens


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qatar-cuts-egypt-loose-as-financial-picture-darkensVia Meadia:





Egypt’s death spiral is now scaring off even its closest friends. Last year, Qatar give an Egypt in crisis $5 billion in aid money. But Qatar won’t help Egypt anymore, according to the FT. Qatar’s decision comes as Egypt continues its downward spiral:


Shortages of diesel in recent weeks have already created long queues in filling stations, fraying tempers and sparking anger, while villagers frequently cut roads and railway lines over such grievances as water cuts and irregular gas supplies.



On top of that, the rising price of imported food ingredients is putting heavy financial burdens on the country’s poor. Reuters reports:


Flour and sugar are 50 percent more expensive than they were a year ago, said [baker Mohammed] Alif, and for now the bakery feels it has no choice but to absorb the increase rather than passing it on to customers:



A $4.8 billion grant from the IMF could stanch the bleeding, but it requires Egypt to accept austerity measures. Austerity remains deeply unpopular with most Egyptians, and politicians are reluctant to risk losing support among constituents.



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