Egypt’s External Debt Falls to USD 152.9 Billion in Two-Year Low

Egypt's external debt experienced a reduction during the fiscal year 2023/2024, decreasing by USD 11.8 billion to reach USD 152.9 billion as of June 2024, according to the Central Bank of Egypt. This marks a two-year low, down from USD 168 billion in June 2023.

A key factor in the decline was the transfer of USD 11 billion worth of Emirati deposits, redirected as investments in the Ras Al-Hekma project. Additionally, the depreciation of most borrowed currencies against the US dollar contributed to a further USD 1.1 billion reduction in debt levels. Despite these reductions, external debt usage increased by USD 300 million during the fiscal year.

External debt service payments for FY 2023/2024 totaled USD 32.9 billion, with USD 23.6 billion allocated to principal repayments and USD 9.3 billion to interest payments. These payments were distributed quarterly, with USD 8.168 billion in the first quarter, USD 7.384 billion in the second, USD 8.255 billion in the third, and USD 9.091 billion in the fourth.

By the end of June 2024, external debt accounted for 38.8% of Egypt’s GDP, indicating a manageable level of debt relative to the country's economic output.