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Egypt’s external debt increases 17.47% to $109.363 bn last September

Egypt's external debt
The World Bank estimates Egypt’s volume of long-debt to be more than $98.3 billion

Egypt’s total external debt rose 17.47 percent at the end of last September, recording $109.363 billion compared to $93.101 billion in the previous year.  

In June 2019, Egypt’s external debts reached $108.699 billion, according to the World Bank data. The country’s external debt spiked by $12.6 billion during the first nine months of 2019. 

The Egyptian Government has allocated $58.86 billion to foreign debt, $27.648 billion to the Central Bank of Egypt, $9.2 billion to banks operating in Egypt and $13.6 billion to the remaining sectors. 

The World Bank estimated Egypt’s volume of long-debt to be more than $98.3 billion. This is equal to 89.9 percent of the total external debt stock and the remaining $1 billion is in the form of short-term debt. 

The Central Bank of Egypt data showed that the country has to pay $1.694 billion and $5.167 billion during the first half and second half of 2020 as debts to Arab countries. It will have to pay $681 million in the first half of 2021 to those countries, a local media report said. 

The country’s finance ministry is planning a debt-to-GDP ratio of 77.5 percent by 2020. The  debt-to-GDP ratio was reduced from 108 percent in 2017 to 98 percent in 2018 and to 90.8 percent in 2019, a local media report said. 

Egypt lowering its debt burden would ensure more accumulation of funds for education and healthcare. Also, it would help to make rapid economic changes and increase competitiveness. Previously, Governor of Central Bank of Egypt Tarek Amer at the International Finance Institute said there are no risks rising from Egypt’s external debt. 

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