Egypt’s foreign debt decreased by $7.4 billion during the first quarter

Egyptian central bank data, which was published on Tuesday, indicates that Egypt’s foreign debt decreased by $7.4 billion during the first three months of 2024.

In late February, the United Arab Emirates acquired the development rights to prime Mediterranean land at Ras El-Hekma for $35 billion, thus bolstering the country’s finances.

From $168.0 billion at the end of December and $164.5 billion at the end of September, the total foreign debt decreased to $160.6 billion by the end of March, according to data from the central bank.

In order to finance a new capital, construct infrastructure, acquire weaponry, and support an overvalued currency, Egypt has quadrupled its external debt since 2015.

It committed itself to a free-floating currency by signing a $8 billion financial support agreement with the International Monetary Fund in March. In March, the IMF disbursed an initial $820 million. The remaining amount will be disbursed in semi-annual installments until September 2026.

The central bank reported that the foreign debt, which is 84.2% long-term, was 39.8% of the gross domestic product, a decrease from 43% in December in December.