The CBE data showed that the external debt increased by $2.32 billion by the end of Q1 of FY2024/2025 to approximately $155.2 billion, compared to about $152.88 billion in Q4 of FY2023/2024.
This is the first rise since Q2 of FY2023/2024 (October-December 2023), when the external debt jumped to about $168 billion.
The increase came despite Egypt's inflows from the $35 billion Ras El-Hekma deal, the country's most significant foreign direct investment (FDI) deal ever.
After signing that deal with the UAE, Egypt's debt decreased by about $14 billion from January to June 2024, the second half of FY2023/2024.
During the first half of FY2023/2024, Egypt received $24 billion from the UAE and settled $11 billion in Emirati deposits owed to it, which contributed to reducing its external debt.
Per the CBE data, long-term external debt also increased by approximately $678 million during Q1 of FY2024/2025, reaching about $127.358 billion by the end of September 2024, up from approximately $126.68 billion posted by the end of June.
Similarly, short-term external debt rose by approximately $1.641 billion during Q1 of FY2024/2025, reaching about $27.661 billion by the end of September 2024, compared to about $26.02 billion by the end of June.
Moreover, the central bank data indicated that the external debt rise resulted from the increase in debt in other unspecified sectors by about $1.704 billion, reaching approximately $19.07 billion by the end of September 2024, up from about $17.366 billion in Q4 of FY2023/2024.
Additionally, the government's external debt increased by about $196 million during Q1 of FY2024/2025, reaching $80.374 billion by the end of September 2024, compared to about $80.178 billion in Q4 of FY2023/2024.
This explains why the country’s external debt is increasing again in Q1 of FY2024/2025.
Egypt has engaged in an $8 billion Extended Fund Facility (EFF) loan deal with the International Monetary Fund (IMF). The fourth review of the loan programme was scheduled for the end of January, but it is still pending the approval of the IMF’s executive board.
After reaching a staff-level agreement on this review, IMF Mission Chief to Egypt Ivanna Vladkova Hollar said the Egyptian authorities have requested to recalibrate their medium-term fiscal commitments due to difficult external conditions and a challenging domestic economic environment.
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