Egypt Daily News – According to data from the Central Bank of Egypt, Egypt’s external debt decreased by $7.4 billion in the first quarter of 2024, bringing the total external debt down to $160.6 billion by the end of March.
This reduction follows a reported external debt of $168 billion at the end of December and $164.5 billion at the end of September 2023. The decrease in debt has also contributed to a decline in the debt’s ratio to the country’s gross domestic product (GDP), which fell to 39.8 percent from approximately 43 percent in December.
The composition of Egypt’s external debt reveals that a significant portion, 84.2 percent, is long-term debt. As of the end of March, short-term debts were approximately $54.3 billion, while long-term debts stood at about $106.3 billion. Notably, debt owed to Arab countries totals $41.6 billion, with $16.4 billion of that amount owed to the UAE alone.
In late February, a major development agreement with the UAE for a project in the Ras El Hekma region, valued at $35 billion, provided a positive outlook for Egypt’s financial landscape.
Furthermore, there has been a surge in portfolio investments in Egypt, with net inflows reaching $14.6 billion, attributed by the Central Bank to renewed confidence among foreign investors in the Egyptian economy.
In addition to these recent changes, Egypt also secured an $8 billion support package from the International Monetary Fund (IMF) in March, which includes a first disbursement of $820 million, with subsequent amounts to be given in semi-annual installments through September 2026.
This financial strategy highlights Egypt’s commitment to maintaining currency exchange rate flexibility and stabilizing its economy amid various challenges.
