Data from the Central Bank of Egypt revealed – today, Thursday – that the country’s external debt rose by $3.5 billion in the three months ending last December.
The total external debt rose to $168 billion, compared to $164.5 billion at the end of last September and from $162.9 billion at the end of December 2022.
Egypt has quadrupled its foreign debt since 2015 to help finance the construction of a new capital, infrastructure, purchase weapons, and support the currency.
A chronic shortage of foreign currency after the Ukrainian crisis led to the exodus of foreign investments from the country, prompting the government to request support from the International Monetary Fund, which in March approved an $8 billion package.
As part of the package, Egypt agreed to reduce spending on large government projects.
The central bank said that 82.5% of external debt is long-term, which is equivalent to 43% of GDP.