Cairo – Mubasher: The Egyptian economy is undergoing difficulties due to the recent crises that hit tourism industry coupled with depreciation in the local currency against the U.S. dollar, said Khaled El Shafie, economist.

He added that an exit from such difficulties should not be through obtaining loans from international banks, as they would be extra burdens and those banks might require exceptional moves that affect the low-income citizens.

The government's request for a $3 billion loan from the World Bank to support the state budget would create 'temporary' stability in economic conditions. However, it will worsen the crisis upon the repayment of the first installment of the loan, according to the economist.

El Shafie also warned that a possible rise in the Fed policy rate for the dollar would trigger difficulties for the Egyptian government during the repayment.