Standard and Poor’s Capital IQ has revealed that Egypt has become the most indebted country in Africa and the Middle East in the third quarter of this year.
In the latest quarterly Global Sovereign Debt Credit Risk Report, published on its website, S & P showed that Egypt is the seventh most indebted country in the world. On the list of the countries most unable to pay their debts in the third quarter of 2013.
S & P revealed that Egypt’s debt insurance costs had reached 672.7 bps and that the potential of Egypt not paying its debts had been raised to 37.9 per cent. The Economic Voice website said that “Egypt’s CDS spreads tightened nearly 100bps early in the quarter as the country’s army overthrew President Morsi and installed an interim head of state.”
The Economist reported that Egypt’s debts now made up 79.8 per cent of its gross domestic product. According to the Economist, Egypt’s debts totaled $234.4billion, putting the debt of each Egyptian at $2600.
The Economist’s Global Debt Clock showed that the annual increase of Egypt’s debt rate had reached 12 per cent, although debt rates had retreated after January 25th revolution. At the end of 2010 Egypt’s debt rate was 81 per cent compared to 79.8 per cent in 2013.
It is worth noting that the US ranking decreased from 3rd to 9th, on the list of countries most able to fulfill their financial commitments in light of the American economic crisis.