Egypt paid a total of $21.3bn in foreign debt servicing—comprising interest and principal repayments—during the first half (H1) of the 2024/25 fiscal year, according to a recent report from the Central Bank of Egypt (CBE).
The payments included $7.95bn in the first quarter (Q1) and $13.35bn in Q2. Of these, interest payments amounted to $2.34bn in Q1 and $1.86bn in Q2, while instalment payments reached $5.61bn and $11.49bn respectively.
The report also noted that Egypt’s total external debt rose to $155.1bn by the end of December 2024, up from $152.88bn at the end of June—an increase of $2.2bn.
This increase was largely attributed to an uptick of approximately $2.8bn in the utilisation of loans and credit facilities. The rise was partially offset by currency valuation effects, with the depreciation of several borrowing currencies against the US dollar reducing the total by an estimated $600m.
Debt servicing obligations have also seen a notable year-on-year increase. From July to December 2024, Egypt paid $21.3bn in external debt service, up from $15.5bn over the same period in 2023. This included $17.1bn in principal repayments and $4.2bn in interest, which covered both sovereign deposits and bond obligations.
As a result, Egypt’s external debt-to-GDP ratio rose to 42.9% in December 2024, compared to 38.8% six months earlier in June. The rising ratio reflects both increased borrowing and broader macroeconomic pressures, including exchange rate volatility and rising debt servicing costs.
Discussion about this post