The Central Bank of Egypt (CBE) has reported a significant decrease in the country’s external debt, which fell by $11.8bn during the fiscal year (FY) 2023/2024. As of June 2024, Egypt’s external debt stood at $152.9bn, down from $168bn in June 2023, marking its lowest level in two years.

In its report released on Sunday, the CBE attributed the reduction to several factors. A key contributor was the transfer of $11bn worth of Emirati deposits, earmarked for investments in the development of the Ras Al-Hekma project. Additionally, the CBE noted a $1.1bn decrease in the value of most of the borrowed currencies against the U.S. dollar, which further contributed to the overall decline. The report also highlighted a $300 million increase in the use of external debt.

Regarding Egypt’s external debt service obligations, the total amounted to $32.9bn for FY 2023/2024. This included $23.6bn in principal repayments and $9.3bn in interest payments. The debt service payments were distributed throughout the year, with $8.168bn paid in the first quarter, $7.384bn in the second quarter, $8.255bn in the third quarter, and $9.091bn in the fourth quarter.

By the end of June 2024, the external debt as a percentage of Egypt’s GDP stood at 38.8%, reflecting a manageable level of debt relative to the country’s economic output.

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