Recent official data revealed a net increase Egypt’s foreign debt valued at $8.1 billion during the fourth quarter of 2021.
Central Bank of Egypt data indicated that Egypt’s total external debt rose to 145.5 billion dollars at the end of December from 137.4 billion dollars at the end of last September, an increase of about 5.8%.
The data showed that the external debt was equivalent to 33.2% of GDP at the end of last December, up from 32.6% at the end of last September.
Despite the rise in the total foreign debt, the Egyptian Finance Minister, Mohamed Maait, revealed that the government is preparing to issue the first sovereign sukuk offering during the coming period.
Maait said that this contributes to reducing the cost of financing development through green sovereign bonds and sustainable development instruments, to provide the necessary liquidity for the implementation of investment and development projects and to enhance aspects of spending on improving the standard of living of citizens and meeting the development needs of the state.
He pointed out that the executive regulations of the Sovereign Sukuk Law had been prepared.
In terms of the country’s foreign exchange reserves, it increased by 41 million dollars during the month of April, compared to March.
The data of the “Central” of Egypt indicated that the reserves increased by the end of last April to 37.123 billion dollars, compared to 37.082 billion dollars in the month of March.
On the decline in foreign reserves, the Central Bank of Egypt explained that this is a result of the Central Bank’s role in maintaining stability in Egyptian markets in light of the turbulent global economic conditions as a result of the Russian-Ukrainian crisis.
He added that, during March 2022, he used part of the foreign exchange reserves to cover the Egyptian market’s foreign exchange needs and to cover the exit of foreign investments and international portfolios, as well as to ensure the import of strategic goods, in addition to paying the international obligations relating to the state’s external indebtedness.
The Governor of the Central Bank of Egypt, Tarek Amer, revealed that the levels of liquidity in the Egyptian banking system are high and there is no crisis, pointing out that liquidity in foreign currencies amounts to 67% of the total assets of the banking system from these currencies, and liquidity in the local currency is 45%.
He said that the year 2021 witnessed a doubling of the business of Egyptian private and public companies compared to 2019, and despite concerns about the impact of this period on job opportunities and the growth rate, unemployment declined and positive results were achieved.
He pointed out that the decisions taken in March and April contributed to the 30% increase in foreign exchange earnings.