Hala El-Saed, Minister of Planning and Economic Development confirmed that the Egyptian external debt is within safe limits globally, as it does not exceed 33% of the gross domestic product (GDP), and that 91% of it is classified as long-term debt in the form of loans and grants from development institutions.
In statements to CNBC Arabia, the minister explained that it is necessary to look at how this debt is utilized. It is pumped in a large number of important mega infrastructure projects and investment expansions within the Egyptian economy.
Egypt's total external debt rose to $145.529 billion at the end of the second quarter of the current fiscal year (October to December) compared to $137.420 billion in the previous quarter (July to September).
The Minister of Planning indicated that there is a committee headed by Prime Minister Mostafa Madbouly to closely follow up on the external debt, study the funding requests for each project and decide on them in line with the priorities of the state's economic plan.
On enhancing the role of the private sector in the economy, the minister said that the Egyptian private sector is a key partner in the development process, adding that Egypt will disassociate investments worth EGP 40 billion over the next 4 years.
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