BEIRUT: Rights groups on Monday said an Egyptian request for a loan from the International Monetary Fund (IMF) must require Cairo to expand social protection, tackle corruption and ensure judicial independence.
Seven rights groups, including Human Rights Watch (HRW), also demanded the Washington-based crisis lender tie cash to ensure transparency on the military’s powerful grip on the economy.
“The IMF and Egyptian authorities should not agree to any loan programme that further raises the cost of living without dramatically increasing investment in universal social protection programs,” the statement read.
Since 2016, the IMF has approved three loans to Cairo totalling $20 billion, with Egyptians struggling amid soaring inflation, devaluation of the Egyptian pound by half, and tough austerity measures slashing subsidies on essential food.
Last month, after Russia’s invasion of Ukraine caused inflation to surge, Cairo said it would apply for another loan.
Egypt is heavily reliant on wheat imports from Russia and Ukraine, and its inflation rate hit 10 percent in February amid a wider spike in global commodity prices caused by the war.
A third of Egypt’s 103 million people live in poverty, and nearly the same number are vulnerable to falling into poverty amid soaring prices of basic food, according to the World Bank.
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