Egypt’s external debt climbed 1.5% to USD 165.4 bn in 3Q FY 2022-2023, up from USD 162.9 bn in the previous quarter, according to central bank data published last week. This is almost 5% up from the same quarter last year when external borrowing clocked in at USD 157.8 bn.

Egypt’s external position has come under 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. Egypt’s external debt has quadrupled over the past decade as the country has ramped up borrowing from multilateral lenders and the international debt markets.

Policy makers are trying to slow the increase: Planning Minister Hala El Said said in June that the government will only take on soft foreign-currency loans to use for its long-term development objectives.

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