Egypt will have a very important event tomorrow at the level of foreign debt, and this event is the result of the great work that the government has done over the past months. I wonder what this event is and how it will rise in Egypt’s economic ranking. Stay with us until the end and you will know the details in this video.
Over the past few months, Egypt has made many economic reforms, and the beginning of the reforms was last March, when the government signed the tourism investment deal in Ras Al-Hikma, which included direct investments amounting to $35 billion, as direct money entered the treasury of the Central Bank, other than the expected returns from the project, which will arrive. For 150 billion dollars in the coming years when the project begins to operate, this is in addition to the many direct and indirect job opportunities that the project will provide for Egyptian youth.
The economic reforms undertaken by the Egyptian government over the past months did not stand on just that. There was also a very important decision behind it, which was to liberalize the exchange rate in a flexible manner. This was the decision that eliminated the presence of two prices for foreign currencies in the Egyptian market, and this was the final blow from the government. To the black market permanently, especially since the continuation of the Egyptian market was threatening the entire Egyptian economy, and represented a direct threat to foreign investments in Egypt, especially since no investor would enter into a project or build a factory in a country with more than one exchange rate, and raw materials would also be bought every day at a price. Different from before, especially since everything currently changes in Egypt due to changes in the exchange rate.
Ok, what results did Egypt achieve from signing tourism investment contracts in Ras Al-Hikma?
The money that entered Egypt from the tourism investment deal in Ras al-Hikma was used by Egypt to provide dollars to investors and suppliers in order to provide the goods that the Egyptian market needs from abroad. We also paid from it a large portion of the interest on the debts that were due to be paid in 2024, which helped Egypt meet its obligations. Which it was for the International Monetary Fund.
Taiba: What important event will happen in Egypt tomorrow?
Egypt will repay dollar bonds tomorrow, Sunday, representing debt maturities worth $1.32 billion. This is part of Egypt’s current external debt, which declined last June to $152.9 billion, compared to $168.034 billion at the end of December 2023.
Ok, how much do you currently owe Egypt’s foreign debts?
The Central Bank said in a report issued last October that long-term external debt fell to $126.8 billion at the end of June, compared to $138.551 billion at the end of December 2023, and short-term debt recorded $26.24 billion, compared to $29.482 billion.
The Central Bank report said that the balances of external debt owed by the government declined to $80.178 billion, compared to $84.849 billion at the end of December 2023.
