Managing Egypt’s External Debt: Challenges and Strategies

2023-10-05 16:52:43

With a stock of external debt estimated at $165.36 billion, Cairo is preparing to face a flurry of repayment deadlines. From next year, the country must pay 29 billion dollars to service its foreign currency debt! This is the equivalent of 130% of the GDP of a country like Senegal.

This is a deadline that financial market professionals and investors await with some apprehension. In 2024, Egypt will have to repay $29.23 billion in principal and interest payments on its external debt, according to data just published by the Central Bank. After this peak, debt service will begin to decline, reaching $19.43 billion in 2025 and $22.94 billion the following year. Reimbursements are only expected to really decrease in 2027 and 2028, years during which Egypt will pay $12.11 billion and $7.5 billion to its creditors, respectively.

The country’s external debt stocks reached $165.36 billion at the end of March 2023 compared to $162.9 billion at the end of 2022.

The Moody’s agency expressed concern regarding the country’s solvency in a report published last April. Its analysts had estimated that “Egypt’s debt capacity and debt sustainability profile are increasingly threatened by the decline in the country’s foreign currency assets.”

Par ALSO WITHEditorial committee –
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