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Egypt pays $670 mln debt to Paris Club: CBE

Reuters , Tuesday 7 Jul 2015
The Central Bank of Egypt's headquarters in downtown Cairo (Photo: Reuters)
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Egypt paid back $670 million of debt to the Paris Club of creditor countries this month, the central bank governor said on Tuesday, further reducing debts exacerbated by years of political turmoil.

"Egypt is committed to making its foreign debt payments on time," Hisham Ramez told Reuters by telephone.

The latest payment would have further shrunk Egypt's total foreign debt, which dropped to $39.9 billion in the third quarter ending in March from $45.29 billion the previous fiscal year.

Years of political turmoil following a 2011 uprising has shattered Egypt's economy and hurt state finances, leading to delays in some debt payments including those owed to oil and gas companies.

The Paris Club is comprised of 19 creditors selected by the International Monetary Fund, aimed at finding coordinated and sustainable solutions to the payment difficulties experienced by debtor countries.

Central bank statistics showed that Egypt's debts to the Paris Club countries dropped 18 percent year-on-year in the third quarter, reaching $3.03 billion. This month's payment would have reduced that figure further.

Egypt's domestic debt surpassed 2 trillion Egyptian pounds ($255.59 billion) at the end of the third quarter as the state taps local sources to finance its budget deficit.

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