Foreign debt inches down during 2H FY 2023-2024: Egypt’s foreign debt sat at USD 152.9 bn during the end of the last fiscal year, falling some USD 15.1 bn — almost 9% — compared to the USD 168 bn recorded at the end of first half of the fiscal year, according to the central bank data.

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A continuous downtrend: Egypt’s external debt dropped to USD 153.9 bn atthe end of May, down by USD 14.2 bn — or 8.4% — from its level at the end of December 2023.

The breakdown: Medium- and long-term debt accounted for some 83% of our total foreign debt, sitting at USD 126.9 bn, while short-term debt made up about 17%, reaching some USD 26 bn.

The bigger picture: External debt fell USD 11.8 bn during FY 2023-2024 from the USD 164.7 bn recorded at the end of the fiscal year 2022-2023.

Thanks to the Ras El Hekma agreement, which helped pave the way for the central bank to float the EGP, which triggered a resurgence of FX inflows in debt investment and remittances from Egyptians abroad.

Egypt’s external debt has quadrupled over the past decade, reaching a record high of USD 168 bn at the end of 2Q of the fiscal year 2023-2024 due to increased borrowing.

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