The Central Bank of Egypt raises interest by two hundred basis points to fight inflation
5.2% growth of the country’s external debt in the fourth quarter of last year
Egypt’s external debt rose 5.2% during the fourth quarter of last year to reach $162.9 billion at the end of December, compared to $154.9 billion in September, according to data issued by the Ministry of Planning and Economic Development.
Egypt’s external debt recorded an increase of about 12% on an annual basis compared to the end of December 2021, when it recorded a level of $145.5 billion, an increase of about $17.4 billion.
External indebtedness declined in the second and third quarters of last year, before increasing again in the last quarter.
Earlier this month, the Central Bank of Egypt announced that Egypt’s external debt balance declined by the end of last September, to record $155 billion, a decrease of $700 million, or 0.5% compared to the end of June 2022.
The bank stated that the decrease is due to the decline in the exchange rate of most of the borrowed currencies against the US dollar by about $2.7 billion, in addition to the increase in the net user of loans and facilities by about two billion dollars.
The report indicated that the burdens of servicing the external debt amounted to $4.8 billion during the period (July/September) of the fiscal year 2022-2023, and the paid installments amounted to about $3.2 billion, and the paid interest amounted to about $1.6 billion.
He pointed out that according to the indicators; The ratio of the balance of external debt to GDP reached 32.4% at the end of September 2022, and it is still within safe limits. According to international standards.
And the Central Bank of Egypt stated in a report on the debts owed by Egypt during the coming months that it may, during the current month of April, pay two billion dollars, half of the Kuwaiti deposit, which amounts to a total of $4 billion, while the second half of it, worth two billion dollars, will be due next September.
It is scheduled that part of the Emirati deposit worth two billion dollars will be paid this April as well, in addition to another billion dollars due in July 2023.