Ahmed Kamel – Egypt Daily News
Egypt repaid approximately $38.7 billion in external debt service during the 2024/2025 fiscal year, according to data released by the Central Bank of Egypt in its latest statistical bulletin, reflecting the scale of the country’s foreign debt obligations amid ongoing economic adjustment efforts.
The Central Bank reported that total payments covering interest and principal installments on external debt reached $38.736 billion over the course of the fiscal year. Debt service payments were unevenly distributed across the year, amounting to $7.952 billion in the first quarter, $13.354 billion in the second quarter, $8.784 billion in the third quarter, and $8.645 billion in the fourth quarter.
In the final quarter alone, Egypt paid $1.895 billion in interest on its external debt, in addition to $6.749 billion in principal repayments, highlighting the substantial cash outflows required to meet foreign obligations.
Despite the scale of repayments, Egypt’s total external debt continued to rise, reaching $161.23 billion by the end of June 2025, compared to $156.689 billion at the end of March 2025. The increase reflects a combination of new borrowing, exchange rate effects, and the government’s reliance on external financing to support balance-of-payments needs and fund development projects.
The ratio of external debt to gross domestic product stood at approximately 44.2 percent by the end of June 2025, up from 43 percent at the end of March. While still below levels seen in some peer emerging markets, the upward trend underscores persistent pressures on public finances and foreign currency liquidity.
Egypt has been pursuing a multi-pronged strategy to manage its debt burden, including extending debt maturities, diversifying financing sources, boosting foreign direct investment, and increasing foreign exchange inflows from tourism, remittances, and exports. These efforts form part of a broader economic reform program supported by international financial institutions and aimed at enhancing fiscal sustainability and reducing vulnerability to external shocks.
Analysts note that while the ability to meet sizable debt service obligations signals continued access to external financing and a degree of financial resilience, sustained economic growth and higher foreign currency earnings will be critical to stabilizing Egypt’s debt indicators over the medium term.
