External debt recorded $45.3 during the third quarter (Q3) of the fiscal year (FY) 2013/2014, surging by 4.8% during the past nine months, the Central Bank of Egypt (CBE) revealed in its monthly bulletin.
“This was an outcome of the rise in net disbursements of loans, facilities and deposits (all maturities) to US$ 1.6bn, and the increase of $ 516.8m worth in external debt because of the rise in most currencies of borrowing versus the US dollar,” the CBE said.
The bank noted that the debt service also climbed by $44.8m to total $2.7bn during FY 2013/2014, pushing the ratio of the debt service to GDP to 15.4% at the end of March 2014. The ratio of debt service to GDP was 14.9% at the end of March 2013.
Domestic public debt recorded EGP 1.708tn in Q3 FY 2013/2014, of which 84.6% was government debt, 3.4% economic authorities debt and 12% National Investment Bank debt. At the end of Q3 of FY 2012/2013, the domestic debt totalled EGP 1.445bn.
Last month, President Abdel Fattah Al-Sisi approved the FY 2014/2015 state budget, where total expenditure stands at EGP 789bn and total expected revenues are EGP 549 bn. The approved budget will push the budget deficit down to 10% of GDP, approximately EGP 240bn.
The president refused to approve the state budget’s original draft, submitted in May, saying it would push the budget deficit up and increase debt to over EGP 2tn.
He stated that Egypt survived the past 10 months with the help of “our brothers”, referring to GCC assistance to Egypt in loans, grants and petroleum products.
“We are embarrassing ourselves and embarrassing the people,” Al-Sisi said, adding that the challenges and problems need to be faced with sacrifices made by every Egyptian.