Egypt Independent

Egypt’s external debt rises by 40.8%



Egypt's total external debt rose by 40.8 percent year-on-year in the first half of the fiscal year 2016-2017, while domestic public debt increased by 28.9 percent in the same period, the Central Bank of Egypt (CBE) announced.
 
In the February bulletin, the CBE said that the country's total foreign debt increased to $67.322 billion in the first half of the fiscal year 2016-2017, ending in December 31, compared to $47.792 billion in the first half of 2015-2016.
 
Domestic public debt recorded LE3.252 trillion (around $166.9 billion) in 2016-2017, compared to LE2.368 trillion in the first half of the previous fiscal year.
 
The balance of foreign currency reserves recorded its highest level since March 2011, reaching about $28.5 billion, while the volume of cash inflows reached more than $17 billion since that date, CBE Governor Tarek Amer said in a meeting with Prime Minister Sherif Ismail on Monday.
 
The CBE announced the flotation of the Egyptian pound on November 3, 2016, leading to a significant increase in prices.
 
The success of the flotation measures was reflected in the marked improvement in the stock market's performance, which reached its highest level ever after a six-year lull — a clear indication of foreign investors' increased confidence in the integrity of the banking reform program and in the ability of Egypt's economy to achieve high and sustainable growth rates, Amer added in a statement on Monday.
 
These positive developments also led to improved performance in the balance of payments, as indicators show a recovery in the proceeds of non-oil commodity exports and an increase in the remittances of Egyptian expatriates, according to Amer.
 
Amer said the CBE will issue its first report on monetary policy, including official rates for basic and for general inflation, in order to promote transparency, enhance communication with all institutions and citizens; and to address internal and external public opinion.