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Egypt’s external debt registered USD 164.7bn at the end of June 2023, up by about USD 9.0 bn or 5.8% year over year, as per the North African nation’s national bank the Central Bank of Egypt (CBE). Long-term debt accounted for $136.6bln, whereas short-term debt accounted for $28.1bln
This resulted from the rise in net disbursements of loans and facilities by $8.9bn and the depreciation of the US dollar exchange rate vis-à-vis the other currencies of the external debt, which led to an increase of $147.9m in book value.
Egypt’s Long-term external debt registered $136.6bn, or 82.9% of total external debt at the end of June 2023, up by about $7.5bn compared with the end of June 2022. Buyers’ and suppliers’ credit reached about $19.9bn, up by $3.5bn at the end of June 2023, compared with the end of June 2022. Multilateral institutions’ debt reached about $52.9bn, up by $1.7bn, as compared with the end of June 2022. Other bilateral debt 1 amounted to some $12bn, up by $895.7m.
Non-guaranteed private sector debt reached $1.6bn, up by $752.5m. This rise, which was realized mainly during the period January-March 2023, resulted from a loan of about $750m granted to a private bank by its headquarters. It is worth noting that this outstanding stock includes the Green bonds, issued by the Commercial International Bank in July 2021, with a nominal value of $100m. Egyptian bonds issued abroad non-resident holdings reached $29.5bn, up by $465.7m.
The outstanding stock of bonds as of June 2023 includes the following: Roughly $22.4bn of Eurobonds issued in US dollars, the equivalent of about $4.1bn of Eurobonds denominated in euro, about $1.5bn of SUKUK issued in US dollar in February 2023, about $737.2m of Green bonds issued in US dollar, the equivalent of about $419.2m of Samurai bonds issued in Japanese yen, and about $355.4m of sovereign notes issued in US dollars.
Moreover, the repurchase agreements registered about $4.7bn, while long-term deposits placed at the CBE by some Arab countries registered about $15bn. These deposits are distributed as follows, $5.7bn by the United Arab Emirates, $5.3bn by Saudi Arabia, and $4bn by Kuwait. Rescheduled bilateral debt reached around $1bn, down by $ 270.5m.
Similarly, short-term debt increased by about $1.5bn compared with June 2022 to reach about $28.1bn at the end of June 2023, or 17.1% of total external debt. Newly placed Arab countries’ deposits at the CBE constituted more than half of the short-term debt at the end of June 2023, registering $15.4bn. Also, another $2.5bn represents the Currency Swap Agreement between the CBE and the People’s Bank of China.
Egypt’s external debt distribution by creditors indicates that $52.9bn was owed to multilateral institutions. The IMF loans alone represent 40% of these institutions’ loans, or the equivalent of $21.2bn, which were classified as follows, $9.3bn in Extended Fund Facility (EFF), $2.7bn in Rapid Financing Instrument (RFI), $5bn in Stand-by Arrangement (SBA), $3.8bn representing SDR allocation, $348.4m representing the First Tranche of the New Extended Fund Facility.
The other major multilateral creditors, which European Bank for Reconstruction and Development (EBRD) $12.3bn or 23.3%, the European Investment Bank (EIB) $4.8bn or 9%, the African Development Bank (AfDB) $2.9bn or 5.4%, and Arab Fund for Economic and Social Development $2.2bn or 4.1%.
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Additionally, $46.2bn was owed to Arab countries mainly; UAE about $20.9bn or 12.7% of total external debt, Saudi Arabia $12.2bn or 7.4%, Kuwait $7.1bn or 4.3%, and Qatar $4bn or 2.5%. Meanwhile, $8.8bn came from five members of Paris Club countries, namely; Germany $2.4bn, Japan and France USD 2.3bn each, and the UK and USA USD 0.9bn each. In addition, USD 8.3bn was owed to China.
