Egypt’s Foreign Debt Shrinks by USD 7.4 Billion in Early 2024

Egypt's foreign debt saw a significant reduction of USD 7.4 billion in the first quarter of 2024, according to recent data from the Central Bank of Egypt. This decline brought the total foreign debt down to USD 160.6 billion by the end of March, compared to USD 168.0 billion at the end of December 2023 and USD 164.5 billion at the end of September 2023.

A key factor contributing to this reduction was the sale of development rights for Ras El-Hekma to the UAE in February 2024, which generated USD 35 billion.

Since 2015, Egypt has significantly increased its external debt, primarily to finance various capital projects, infrastructure developments, military acquisitions, and to support its currency.

In March 2024, Egypt secured an USD 8 billion financial support package from the International Monetary Fund (IMF) and committed to transitioning to a free-floating currency. The first installment of USD 820 million from this package was disbursed in March, with additional funds set to be released in semi-annual installments until September 2026.

Long-term debt currently makes up 84.2% of Egypt's total foreign debt, which now represents 39.8% of the country's GDP, down from 43% in December 2023.