Egypt repays over $20bn worth external debts in 4 months

Egypt repays over $20bn worth external debts in 4 months

Egypt has repaid over $20bn worth external debts to international financial and investment institutions in the past four months, and expects to repay more $5bn within 12 months, a banking sector source has revealed.

In statements to the Middle East News Agency (MENA), the source added that Egypt's foreign debts constitute less than 33% of GDP.

He noted that this figure is very low according to international standards that divide external debt slides on countries into three segments. Egypt has been placed in the lowest segment, due to the decrease in its external debt to GDP ratio.

The source added that Egypt has paid off its short-term debts, and replaced them with a long-term loan portfolio, some of which extend for 40 years. This brings the country's long-term debt ratio to nearly 90% of the volume of debts it owes.

He pointed out that Egypt had agreed on loans worth $13bn from the International Monetary Fund (IMF) and the international market. These are long-term loans from which Egypt has so far obtained $7.77bn, including $2.77bn from the IMF as part of the rapid financing instrument, and a further $5bn worth of bonds sold last month. This came against repaying the $20bn commitment in