A report by the Central Bank of Egypt (CBE) reveals that debt service costs for 2025 are estimated at $22.46 billion, reflecting an increase of $900 million compared to previous forecasts. This includes $13.78 billion in the first half of the year and $8.66 billion in the second half.
The report also highlights a reduction in Egypt's total external debt, which declined by $7.7 billion during Q2 2024, settling at $152.9 billion in June, down from $160.6 billion in March.
Long-term external debt dropped by $8.6 billion to $126.9 billion, accounting for 83% of the total external debt, compared to 84.2% previously. By the end of June 2024, short-term debt was recorded at $52.8 billion, while long-term debt stood at $100.1 billion.
Arab deposits totaled $9.3 billion, including $5.3 billion from Saudi Arabia and $4 billion from Kuwait, reflecting a $5.7 billion decrease compared to June 2023. The decline is attributed to the conversion of a UAE deposit into investments in the Ras El Hekma development project. Additionally, Kuwait renewed a $2 billion deposit set to mature in April 2024, extending its term until April 2025.
The report noted a $4 billion reduction in debt owed to multilateral institutions, bringing the total to $48.9 billion. External bonds and sukuk were valued at $27.7 billion as of June 2024, including $19.9 billion in dollar-denominated Eurobonds, $4 billion in Eurobonds in euros, and $1.5 billion in dollar-denominated sukuk. Other issuances included Samurai bonds in yen, green bonds, Panda bonds in yuan, and sovereign securities.
The external debt of the CBE declined by $6.5 billion during Q2 2024, reaching $34.6 billion, which accounts for 22.7% of the total external debt. The reduction is primarily due to a drop in UAE short- and long-term deposits.
Long-term government debt also decreased by $1 billion during the same period, standing at $80.2 billion in June, with the share of government debt rising to 52.4% of the total external debt. On a yearly basis, government debt dropped by $3.2 billion due to repayments of long-term loans and three installments of externally issued bonds.
