Long-term external debt decrease to $126.9 billion by the end of June External debt decreased to $80.2 billion from $84.8 billion in December RIYADH: Egypt’s external debt decreased to $152.9 billion by the end of June, a significant reduction from $160.6 billion at the end of March and $168 billion at the close of December 2023, official data showed. The country, which has a fiscal year running from July 1 to June 30, saw long-term external debt decrease to $126.9 billion by the end of June, down from $138.6 billion the previous year. Short-term debt also dropped to $26.02 billion, compared to $29.5 billion before, according to the Central Bank of Egypt. The Egyptian government’s external debt decreased to $80.2 billion from $84.8 billion in December. The CBE’s own debt also saw a significant reduction, falling to $34.67 billion from $45.3 billion at the end of 2023. However, debt owed by Egyptian banks rose slightly to $20.67 billion by the end of June, up from $20.1 billion at the close of last year. The overall decline in external debt highlights the Egyptian government’s ongoing efforts to manage its financial obligations amid a challenging global economic environment. The country’s economic challenges, including inflation and fiscal deficits, have necessitated a careful balance between managing external obligations and sustaining growth. The reduction in overall external debt is viewed as a positive signal to international markets and may bolster future creditworthiness, particularly as Egypt seeks international assistance and investment. In a push to further boost the country’s economic growth, Prime Minister Mostafa Madbouly stated that the government is aiming to offer several airports and banks to the private sector soon. In an official meeting on Oct. 14, Madbouly emphasized the government’s commitment to its privatization program, underlining that significant announcements will be made in the near future as part of the initiative, which is being implemented in cooperation with the International Finance Corp. The meeting of the Coordinating Council for Monetary and Financial Policies, which included CBE Governor Hassan Abdalla, focused on strategies to stabilize the economy amid regional conflicts. Abdalla highlighted the success of efforts to stabilize the exchange rate of the US dollar, supported by steady remittances from Egyptians abroad. The council also reviewed initiatives aimed at encouraging further remittances, including the successful “Beit Al-Watan” program, which has contributed to a stable inflow of foreign currency into the banking system. According to the report released by the Central Agency for Public Mobilization and Statistics in September, Egypt’s trade deficit decreased by 5.1 percent in June, reaching $2.87 billion due to falling prices for wheat and other commodities. Imports fell by 3.3 percent to $6 billion during the month. The decline in imports was primarily driven by reduced prices for key commodities: wheat prices dropped by 21.5 percent, medicines and pharmaceutical preparations by 11.9 percent, plastics by 4.2 percent, and corn by 28.6 percent. This follows a 10.3 percent decrease in trade deficit recorded in May, which was also attributed to lower import values. In its fiscal year for 2023/24, Egypt achieved a primary budget surplus of 6.1 percent, bolstered by a landmark sale of coastal land to the UAE, said the country’s finance minister. At a press conference in August, Ahmed Kouchouk disclosed that Egypt’s total expenditure amounted to 3.016 trillion Egyptian pounds ($61.3 billion), with a budget deficit of 3.6 percent. In February, the UAE, through a consortium led by Abu Dhabi’s sovereign wealth fund ADQ, signed an agreement to invest $35 billion in Ras El-Hekma, a Mediterranean region 350 km. northwest of Cairo. This deal represents the largest foreign direct investment in Egypt’s history. The minister highlighted that no new taxes were imposed last year, and tax revenues increased by 30 percent year on year for the financial year 2023/24. This aligns with the International Monetary Fund’s objective for Egypt to boost tax revenue in its 2025/26 budget.