Egypt has $20 billion as external debt obligations that are to be paid in the current FY2020/2021, according to the World Bank.
The world Bank added that near-term pressures on the country’s foreign reserves are expected to rise due to a distressed global economy and turbulent financial markets amid COVID-19 crisis.
This external debt includes the deposits of Saudi Arabia, UAE, and Kuwait in the Central Bank of Egypt (CBE), which amount to $17.2 billion.
The report also unveiled that the government debt to GDP ratio is projected to increase by the end of FY2020/2021, reaching 96 per cent, up from the 90.6 per cent expected in October. It is then expected to resume its downward trend by FY2021/2022.
Egypt has largely withstood the covid shock: Thanks to the fiscal, monetary and energy sector reforms implemented in recent years, and the government’s emergency measures, Egypt has managed to hold out reasonably well against its covid-19 epidemic. Real growth remained positive over the last fiscal year and foreign reserves are intact.
