Egypt’s external debt drops 5% in Q4 FY2023/24 – WB
Egypt’s external debt reached a record $168.1 billion in 2023, a 2.9% rise from the previous year and the highest level since 2012, according to the World Bank’s International Debt Report (IDR) released on December 3. However, the Central Bank of Egypt (CBE) reported a 5% quarterly decline, with external debt falling to $152.88 billion in Q4 of FY2023/2024 from $160.60 billion in the prior quarter.
The Government is committed to reducing its debt burden, aiming to lower the debt-to-GDP ratio to 88% in the current fiscal year and below 80% by FY2026/2027. In 2023, external debt equaled 239% of export revenues and 44% of Gross National Income (GNI), reflecting significant strain on Egypt’s economy. Debt servicing consumed 30% of export earnings and 6% of GNI.
Private creditors held the largest share of external debt in 2023, accounting for 38%, including 23% from bondholders and 15% from commercial lenders. Multilateral institutions, including the IMF (12%) and the World Bank (9%), held 35%, while bilateral creditors made up 27%, with Saudi Arabia, Kuwait, and the UAE each contributing around 5%.
Between 2010 and 2023, Egypt’s external debt surged from $36.8 billion to $168.1 billion. Long-term debt rose from $32.3 billion to $119.3 billion, multilateral debt increased to $32 billion, and private creditor debt grew significantly, with bondholder debt jumping from $3.3 billion to $29.8 billion.