Egypt’s foreign debt reaches $100bn

Egypt’s external debt is currently estimated at $100 billion, including the $30 billion Dabaa project’s loan, as well as the debts due to governmental and economic institutions and foreign oil companies, experts have warned.

Official data revealed that the Egypt’s foreign debt has risen to reach $60 billion hindering the Egyptian government from repayment, especially with the foreign currency shortage which may result in a further instability in the country.

Almesryoon agency quoted the former chairman of the Egyptian Direct Investment Association, Hani Tawfik, saying that the current value of Egypt’s external debt represents the net loans obtained by the government excluding the Dabaa project’s loan.

 He stressed that the total external debt is likely to exceed $100 billion. This has resulted from the international, public and economic institutions’ debts, the $25 billion Dabaa project’s loan, along with the interest of $5 billion to be paid on it, Siemens accruals and the oil companies’ arrears, he added.

Egypt’s debts to foreign oil companies reached $3.4 billion last June. The government paid $100 million accumulative arrears owed to foreign companies in 2015/2016, and is expecting to pay off a new portion this month.

Tawfik noted that the Egyptian pounds’ devaluation make the repayment process exhausting. Egypt is committed to repay about $4 billion this month.

“The government must repair its economy in a tangible way, by keeping the budget deficit and public debt under control,” an economics expert said, adding: “An increase on the returns on treasury bills will lead to inflation and an increase in the costs of government debt.”