Egypt Plans Spending Cuts as It Faces Economic Crisis

Egypt plans to cut spending after the International Monetary Fund extended hundreds of millions of dollars in an economic bailout package, as the country struggles to pay off debts accumulated from a decadeslong building boom, the Wall Street Journal reported. Authorities said earlier this week they would delay state projects that required significant U.S. dollars to fund and cut back on travel, training and conferences for officials, according to Egypt’s cabinet. The announcement came after the government agreed to a series of measures as part of an IMF package, including selling billions of U.S. dollars worth of state assets to international investors, taking steps to reduce the role of the state and military-owned companies in favor of private businesses in the economy, and shifting to a more flexible currency exchange system, according to the international creditor this week. The IMF said Egypt agreed to reduce its financing needs and cut back on debt but didn’t lay out specific areas for cuts. Read more. (Subscription required.)