Egypt’s Finance Minister, Mohamed Maait, announced that the country has disbursed a substantial sum of $25.5 billion in interest payments and debt instalments during the first half of this year. These remarks were made during a symposium discussing Egypt’s upcoming role as the host of the Asian Infrastructure Investment Bank meetings, scheduled for late September. The Middle East News Agency reported the statements on Saturday.
Minister Maait revealed that Egypt has made payments totalling $52 billion towards instalments and interest on its outstanding financing obligations over the fiscal years 2021-2022 and 2022-2023. He emphasized that these two years have presented some of the most economically challenging circumstances the world has ever encountered.
Furthermore, Maait pointed out that these substantial payments were in addition to approximately $22 to $23 billion in short-term investments that have left Egypt in recent years.
Over the past three years, Egypt’s public finances have faced significant pressures due to a persistent shortage of foreign currency, inflationary forces, high levels of indebtedness, and the adverse effects of the Ukrainian conflict, which have led to rising prices for essential food and energy imports.
As of March this year, Egypt’s total debt reached approximately $165.4 billion. Additionally, the Egyptian currency has witnessed a nearly 50% devaluation against the US dollar since March 2022. The $3 billion loan granted by the International Monetary Fund (IMF) in December has encountered delays due to Egypt’s gradual pace in selling state assets and adopting a flexible exchange rate.
These financial challenges underscore the complex economic landscape Egypt has navigated in recent years, highlighting the need for continued fiscal management and economic reforms to ensure stability and growth in the face of global economic uncertainties.
