Recent data from the Central Bank of Egypt reveals that the country's external debt has dropped by over $15 billion since the beginning of the year, marking a continued decline in the second quarter of 2024 for the second consecutive period.
As of the end of the second quarter, which concluded in June, Egypt’s external debt stood at approximately $152.9 billion, down from $160.6 billion at the end of the first quarter. The debt had peaked at $168 billion by the end of December 2023.
According to the Central Bank’s data, the majority of Egypt's external debt is long-term, amounting to around $126.9 billion, while short-term debt is approximately $26 billion.
Egypt’s financial situation received a significant boost in late February, when it signed a $35 billion agreement with the United Arab Emirates to develop the Ras El-Hekma city project on the Mediterranean coast. As part of the deal, $11 billion in UAE deposits with the Central Bank of Egypt were converted into investments, effectively reducing the country’s overall external debt.
Additionally, in March, Egypt secured an $8 billion support package from the International Monetary Fund (IMF), in which the country committed to maintaining exchange rate flexibility. The IMF disbursed two installments to Egypt, each worth $820 million, in March and August. The remaining funds will be distributed in semi-annual installments through September 2026.
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