Total external debt recorded USD 161.2 bn by the end of the fiscal year 2024-25, recording a 5.5% y-o-y increase, according to the recent Central Bank of Egypt’s external position report (pdf) for the fiscal year.

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No reason to worry: “The external debt remained within manageable limits, with a stock-to-GDP ratio of 44.2% and with a favorable structure of 80.8% as long-term debt,” the report read.

The report said the uptick in external debt was the result of a USD 5.4 bn increase in disbursements of external loans and facilities and the USD’s depreciation against other foreign debt currencies, which resulted in a USD 2.9 bn increase in book value.

External debt service climbed to USD 38.7 bn during FY 2024-25, up USD 5.8 bn y-o-y. Principal repayments were the main driver behind the increase, rising by USD 6.5 bn to USD 30.2 bn, while interest payments shrank by USD 700 mn to hit USD 8.5 bn.

Foreign reserves saw a USD 2.3 bn increase during the fiscal year, reaching USD 48.7 bn. This rise was primarily driven by a USD 4.1 bn increase in gold reserves, which helped offset a USD 1.8 bn dip in foreign currencies.

Commercial banks’ net foreign assets jumped to USD 2.1 bn during the fiscal year to end the year at USD 4.9 bn. Foreign currency deposits climbed 18.5% y-o-y during the period to reach USD 62.3 bn. Looking at the banking sector as a whole, it saw net foreign assets rise to USD 14.9 bn by the end of the fiscal year.

The report also highlights key developments to our current account deficit, which narrowed to USD 15.4 bn in FY 2024-25, backed by a marked increase in remittances, a rise in tourism revenues, and a jump in non-oil exports.

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