- Egypt to go bankrupt over endless riots!
The unrest in Egypt continues. Hundreds of people are marching in the streets, disgruntled by the adopted declaration that gives President Mohammed Mursi virtually unlimited powers. Mass protests in the country have led to a sharp drop in the country’s financial market. Analysts predict that if this trend continues, in three months Egypt will become bankrupt.
Hisham Tawfik, an executive board member of the Egyptian stock exchange said that one of the most popular resorts of the world was on the verge of bankruptcy. According to him, the country’s stock market has plummeted. Only in the last few days the main EGX-30 index dropped by 3.9 percent, raising serious concerns among analysts.
As noted by Himasha Taufik, the situation on the stock market of Egypt is rather dangerous. If a downward trend continues, three months later the country will face complete bankruptcy. According to Reuters, on the night from 24 to 25 November the main index fell by 10 percent, which is disastrous for the entire economy.
As reported by Los Angeles Times, the reason for this decline in the financial market of Egypt was the new constitutional declaration giving the incumbent president Mohammed Mursi special legislative powers that cannot be challenged even by the court. The new law has caused thousands of demonstrations and riots across the country. According to Los Angeles Times, public demonstrations were suppressed by the police who used tear gas and batons.