Egypt’s external debt declined to $154.980 billion at the end of Q1 FY2022/2023 (July-September 2022), compared to the previous fiscal year’s first quarter which recorded $155.708 billion, revealed a new data set from the Central Bank of Egypt (CBE).

This marks the second consecutive drop in external debt, with the final quarter of FY2021/2022 logging in $155.708 billion – a drop of $2 billion compared to Q3 FY2021/2022.

Long-term external debt reached $127.572 billion during the first quarter of the fiscal year 2022/2023, compared to $129.089 billion during Q4 of FY2021/2022.

Short-term external debt hit $27.408 billion during Q1 of the current fiscal year, compared to $26.619 billion in Q4 of the previous FY.

The International Monetary Fund (IMF) had previously projected a decline in public debt to GDP to record 88.3% in FY2022/2023, 85.5% in FY2023/2024, 83.5% in FY2024/2025, and 81% in FY2025/2026, and 77.9% in FY2026/2027.

The IMF’s Managing Director, Kristalina Georgieva, recently explained that the fund is concerned about the MENA region’s public debt, highlighting that several economies in the region are facing elevated debt-to-GDP ratios—some close to 90%.

The MD did point out that Egypt is taking important steps to avoid financial risks.