Egypt‘s external debt declined to $160.6 billion by the end of March 2024, compared to $164.5 billion by the end of the first quarter of 2023/2024.
The Central Bank’s data issued today revealed that debt service burdens are divided into $8.168 billion by the end of the first quarter of 2023/2024, $7.384 billion during the second quarter, and $8.255 billion during the third quarter of the fiscal year.
The Central Bank also explained that $8.255 billion was paid from the beginning of January until March 2024, of which $2.542 billion was paid interest and $5.712 billion was paid in installments.
The ratio of external debt to GDP recorded about 39.8% by the end of March 2024, compared to 42.4% by the end of September 2023.
In a related context, the value of Egypt’s short-term external debt declined, recording $25.3 billion at the end of March 2024, compared to about $28.1 billion at the end of June 2023, a decrease of about $2.8 billion.
The Central Bank of Egypt explained in the report on the external position of the Egyptian economy, issued today, that the deposits of Arab countries in the Central Bank of Egypt constituted about 43.9% of this balance, equivalent to 11.1 billion dollars.
The period from January to March 2024 witnessed the transfer of a UAE deposit worth US$5 billion at the Central Bank to the Ras Al Hikma project.
Source: Cairo 24
#Egypt #pays #billions #dollars #debt
2024-09-18 12:42:00
– What factors contributed to the significant decline in Egypt’s external debt?
Table of Contents
Egypt’s External Debt Sees Significant Decline: A Positive Economic Outlook
The economy of Egypt has recently witnessed a significant improvement, with the country’s external debt declining to $160.6 billion by the end of March 2024. This downward trend is a welcome development, as it indicates a reduction in the debt service burden and a more stable economic outlook for the North African nation.
A Comparison with Previous Quarters
Compared to the first quarter of 2023/2024, when the external debt stood at $164.5 billion, the recent figure represents a decrease of approximately $3.9 billion. This decline is a testament to the country’s efforts to manage its debt effectively and reduce its reliance on foreign borrowing.
Breaking Down the Debt Service Burden
The Central Bank of Egypt has provided a detailed breakdown of the debt service burden, which is divided into three quarters. The first quarter of 2023/2024 saw a debt service burden of $8.168 billion, followed by $7.384 billion in the second quarter, and $8.255 billion in the third quarter of the fiscal year. These figures highlight the importance of prudent debt management and the need for sustained efforts to reduce the debt burden.
Debt Repayment and Interest
In addition to the debt service burden, the Central Bank has also revealed that $8.255 billion was paid between January and March 2024. This includes $2.542 billion in interest payments and $5.712 billion in installments. These figures demonstrate the country’s commitment to meeting its debt obligations and reducing its debt stock.
External Debt-to-GDP Ratio
The external debt-to-GDP ratio, which measures the proportion of external debt to the country’s Gross Domestic Product (GDP), has also seen a significant improvement. By the end of March 2024, the ratio stood at approximately 39.8%, down from 42.4% by the end of September 2023. This decline indicates a more sustainable debt situation and a reduced risk of debt distress.
Short-Term External Debt
Furthermore, the value of Egypt’s short-term external debt has also declined, recording $25.3 billion. This reduction is a positive development, as short-term debt can be more volatile and prone to fluctuations.
Economic Implications
The decline in Egypt’s external debt has significant economic implications. A lower debt burden can lead to increased investor confidence, improved credit ratings, and a more stable macroeconomic environment. This, in turn, can attract foreign investment, boost economic growth, and create jobs.
Conclusion
the decline in Egypt’s external debt is a welcome development that reflects the country’s efforts to manage its debt effectively and reduce its reliance on foreign borrowing. The reduction in the debt service burden, debt-to-GDP ratio, and short-term external debt are all positive trends that bode well for the country’s economic future. As Egypt continues to implement prudent economic policies and manage its debt sustainably, it is likely to attract more investment, boost growth, and improve the standard of living for its citizens.
Keywords: Egypt’s external debt, Central Bank of Egypt, debt service burden, debt-to-GDP ratio, short-term external debt, economic outlook, macroeconomic environment, foreign investment, economic growth.
Meta Description: Egypt’s external debt has declined to $160.6 billion, with a reduced debt service burden and debt-to-GDP ratio. This positive development reflects the country’s efforts to manage its debt sustainably and improve its economic outlook.
Header Tags:
H1: Egypt’s External Debt Sees Significant Decline: A Positive Economic Outlook
H2: A Comparison with Previous Quarters
H2: Breaking Down the Debt Service Burden
H2: Debt Repayment and Interest
H2: External Debt-to-GDP Ratio
H2: Short-Term External Debt
H2: Economic Implications
H2: Conclusion
Components: principal repayments, interest payments, and associated costs. How does the reduction in Egypt’s external debt affect these components of the debt service burden?
Egypt’s External Debt Sees Significant Decline: A Positive Economic Outlook
The economy of Egypt has recently witnessed a significant improvement, with the country’s external debt declining to $160.6 billion by the end of March 2024. This downward trend is a welcome development, as it indicates a reduction in the debt service burden and a more stable economic outlook for the North African nation.
A Comparison with Previous Quarters
Compared to the first quarter of 2023/2024, when the external debt stood at $164.5 billion, the recent figure represents a decrease of approximately $3.9 billion. This decline is a testament to the country’s efforts to manage its debt effectively and reduce its reliance on foreign borrowing.
Breaking Down the Debt Service Burden
The Central Bank of Egypt has provided a detailed breakdown of the debt service burden, which is divided into three
