The Clap
Egypt’s external debt recorded a decrease of 1.3% in Q4 2021/2022 to reach $155.7 billion, the first decrease in external debt since September 2021.
Reasons
Economic analyst Hany Genena said that one reason for the decline in debt is that Egypt paid some foreign debts without adding on more debts.
Also, euro-denominated debt decreased since the euro declined against the dollar.
It is worth noting that on an annual basis, Egypt’s external debt increased by 13%, due to the offering of samurai bonds worth $500 million.
Why this Matters
When external debt increases, the country is unable to invest heavily in its economic growth because its revenues go to repaying the debts.
