Egypt’s external debt slips to 38.8% of GDP by end of FY2023/2024

Cairo – January 13, 2025: Egypt’s external debt at the end of the previous fiscal year (FY2023/2024) accounted for 38.8 percent of the country’s GDP, which the CBE described as a manageable ratio, indicating that the country’s debt level remains sustainable in relation to its economic output.

The Central Bank of Egypt (CBE) recently reported a significant decline in the country’s external debt, which dropped by $11.8 billion during FY2023/2024, marking the lowest level of external debt for the country in two years.

By the end of FY2023/2024 (July 2024), Egypt’s external debt stood at $152.9 billion, down from $168 billion in June 2023.

The report also detailed Egypt’s external debt service obligations, which totaled $32.9 billion for FY2023/2024.

Of this total, $23.6 billion was allocated to principal repayments, while $9.3 billion was earmarked for interest payments. These payments were distributed over the fiscal year, with the breakdown as follows: $8.168 billion in the first quarter, $7.384 billion in the second quarter, $8.255 billion in the third quarter, and $9.091 billion in the fourth quarter.

With Egypt’s 2-year foreign currency shortage situation dealt with, buoyed by investments in Ras El-Hekma and an IMF loan expansion, the country has accelerated its payments to improve its financial position, reduce its debt burden, and create a more stable economic environment.

In November and December of 2024, Egypt repaid approximately $7 billion of its due debts, bringing the total amount repaid in 2024 to $38.7 billion, according to Prime Minister Mostafa Madbouly. The government targets reducing the external debt-to-GDP ratio to about 88 percent in FY2024/2025.