The breakdown of the debt payments shows that Egypt settled $8.168 billion during the first quarter of the fiscal year, followed by $7.384 billion in the second quarter, and $8.255 billion in the third quarter. These payments come as the country grapples with a substantial external debt burden, which had reached $165.36 billion by the end of March 2023, according to the CBE. Egypt’s fiscal management remains under scrutiny, with international institutions closely monitoring the country's ability to meet its obligations while maintaining internal stability.
In 2024 alone, Egypt is required to pay $29.23 billion in foreign debt service, with $14.59 billion due in the first half of the year and $14.63 billion scheduled for the second half. These figures represent significant financial strain, as Egypt balances debt servicing with other fiscal needs such as currency stabilization and infrastructure investment.
In response to this mounting debt burden, the government is actively seeking ways to increase its foreign currency reserves and dollar revenues. This includes efforts to boost exports, attract foreign investment, and stimulate sectors like tourism. The country aims to generate $191 billion annually by 2026 through various revenue-generating mechanisms. However, concerns over the sustainability of Egypt's economic strategy persist, particularly as it continues to rely on external loans.
Egypt has also been negotiating with the International Monetary Fund (IMF) to secure a $3 billion loan as part of a broader financial rescue plan. Despite challenges in completing the first review of the loan agreement, which was initially scheduled for March, the IMF remains a critical player in Egypt’s economic recovery strategy.
With further debt payments of $19.43 billion due in 2025 and an additional $22.94 billion in 2026, the coming years are expected to be equally financially strenuous for Egypt. The burden is projected to ease after 2027, with debt service requirements dropping to $12.11 billion in that year and further to $7.5 billion in 2028. However, for now, Egypt's immediate focus remains on meeting its near-term financial obligations and managing the ongoing economic crisis, which has been exacerbated by high inflation, a weakening currency, and the global economic slowdown.