Egypt’s external debt recorded its largest annual drop in history in 2024, falling by $12.9 billion year-on-year to reach $155.093 billion by the end of December, down from $168.034 billion in 2023, according to data released by the Ministry of Planning, Economic Development, and International Cooperation.
The decline comes as a result of a series of economic reforms led by the Central Bank of Egypt, which aimed at stabilizing the country's financial position and reducing reliance on external borrowing.
Prime Minister Mostafa Madbouly stated that the debt level has now returned to safe limits, crediting the successful implementation of reform measures throughout the past year.
Looking ahead, Egypt is expected to continue reducing its debt levels in 2025, particularly as the government remains committed to meeting its debt obligations on time. A comprehensive strategy is currently being finalized to manage external debt, aiming to cut it by an additional $1.5 to $2 billion. The plan includes issuing bonds in a carefully planned manner, with proceeds used strictly for refinancing existing debt rather than accumulating new liabilities. This approach is expected to extend the debt maturity profile without increasing the overall debt burden.
According to a Cabinet statement, Egypt paid off $7 billion in debt during November and December 2024 alone. The total debt repayments for the year amounted to approximately $38.7 billion.
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