Egypt is required to pay off $23 billion in debts and interest next year, meaning roughly at a rate of one billion dollars every month.. Where will you get them from? And how can Egypt repay $33 billion in 2024 without crises or a shortage of the dollar in the exchange market? We will know the details in this video. Stay with us until the end.
The truth is that the success of the government and the Central Bank in the foreign debt file until now is studied in economics because the government repaid billions of dollars in 2024 and it is still facing the most difficult and dangerous currency crisis, and also because it repaid these amounts, which reached 33 billion dollars in the fiscal year and without any crises occurring. Large or there will be a shortage of the American currency, and on the contrary, people do not know that Egypt has paid these amounts, except from the data of the government and the Central Bank of Egypt, which played a fundamental role in arranging the dollar to pay. Debt installments.
Ok, how much will Egypt pay off debts and interest in 2025?
Look, sir, the recent external situation report issued by the Central Bank of Egypt revealed that the value of installments and interest on debts owed by Egypt during 2025 will reach 22.46 billion dollars, an increase of 900 million dollars over its previous estimates, and the amount of debt service is distributed between 13.778 billion dollars in the first half of the fiscal year and the 8th. $663 billion during the second half.
In numbers, the total external debt decreased by about 7.7 billion dollars during the second quarter of this year to 152.9 billion dollars in June last year, and 160.6 billion dollars in the previous March. The stock of long-term external debt decreased by 8.6 billion dollars during the second quarter of this year and recorded 126.9 billion dollars. dollars at the end of last June, compared to 135.3 billion dollars at the end of last March, which led to a decrease in its percentage of the total external debt to 83% instead of 84.2%.
By the end of June 2024, short-term debt by remaining maturity amounted to $52.8 billion, and long-term debt was $100.1 billion.
Ok, where will the state pay the $23 billion?
The answer is quite simple, as the debts were paid in 2024, they will be paid in 2025. By the way, the year 2024 is the year in which we will pay off large debts the most, meaning all the upcoming installments will be less than what we paid in this year, and Egypt has state resources that increase more and more every day, and this is the reassuring thing in the debt file. For example, Egypt is currently witnessing the largest influx of investments in its history, which began with Ras Al-Hikma and then began Investment flows in all sectors, especially in tourism, industry, and clean energy. Egypt has received billion-dollar projects in recent months, and we talked about them a lot here at Banker, and it struck us as the case that there are two projects, but ammonia and solar energy, whose investments alone are 20 billion dollars.
Another resource that will allow Egypt to repay its foreign debts in 2025 is the continued increase in exports, and Egypt has achieved, for example, an increase in non-oil exports to $33.35 billion during the first ten months of the current year, in addition to the record rise in remittances from Egyptians abroad, in addition to tourism revenues. The Suez Canal, government proposals, and treasury bonds also have a historic cash reserve.
There are also other solutions to reduce debts without paying a dollar, which is to convert part of the debts into investments, as happened with the Emirates. A deposit of 5.7 billion dollars was included in the investments of the Ras Al-Hikma project, and we have about 9 billion dollars in deposits for Saudi Arabia and Kuwait, with 5.3 billion dollars from Saudi Arabia and $4 billion from Kuwait, and it is highly likely that they will also be transferred to investments.
