Egypt’s external debt hit a record high in 2Q FY 2022-2023 following two quarters of declines, according to data published by the Planning Ministry. External borrowing rose 5.1% q-o-q to USD 162.9 bn during the October-December quarter, up from USD 154.9 bn in 1Q FY 2022-2023, the figures show.

Remember:Egypt’s external position has come under significant pressure on the back of a stronger USD, higher interest rates, and turmoil in the financial markets. The EGP has lost more than half of its value against the USD since last year, making it more difficult to repay our debts.

Debt has soared in recent years: Egypt’s external debt has more than doubled over the past five years as the country has ramped up borrowing from multilateral lenders and turned to the international debt markets to raise funds with increasing frequency. On an annual basis, external debt rose 12% from 2Q FY 2021-2022.

REMEMBER- Our USD 3 bn IMF financing package is helping to alleviate the squeeze on our external position and could help attract more FDI from other quarters. The rebooted privatization program designed to pull the country out of its financial crisis and secure much needed FX. The goal is to attain a primary surplus of 1.7% for FY 2022-2023. It is also aiming to improve the current account deficit to 2% over the medium term.

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