Egypt's net external debt increased by $8.1 billion in the fourth quarter of 2021, recent official data revealed.
Egypt's total external debt rose to $145.5 billion at the end of December from $137.4 billion at the end of September, an increase of about 5.8 percent, according to central bank data.
The data showed that external debt was equivalent to 33.2% of GDP at the end of December, up from 32.6% at the end of September.
Despite the rise in total foreign debt, Egypt's Finance Minister, Mohamed Maait, revealed that the government is preparing to issue its first sovereign sukuk offering in the coming period.
This contributes to reducing the cost of financing development through green sovereign instruments and sustainable development instruments, to provide liquidity for the implementation of investment and development projects and to enhance spending to improve the standard of living of citizens and meet the development needs of the state, Mait said.
He noted that the executive regulations of the Sovereign Instruments Act had been prepared.
In terms of the country's foreign exchange reserves, it increased by $41 million in April, compared to March
According to Egyptian Central Bank data, reserves at the end of April increased to $37.123 billion from $37.082 billion in March.
On the decline in foreign reserves, the Central Bank of Egypt explained that this is the result of the central role to maintain the stability of Egyptian markets in light of the global economic conditions troubled by the Russian-Ukrainian crisis.
In March 2022, he used part of the foreign exchange reserves to cover the Egyptian foreign exchange needs of the Egyptian market, to cover the exits of foreign investments and international portfolios, as well as to ensure the import of strategic goods, in addition to paying international obligations on the country's external indebtedness.
The Governor of the Central Bank of Egypt, Tarek Amer, revealed that liquidity levels in the Egyptian banking system are high and there is no crisis, pointing out that foreign currency liquidity amounts to 67% of the total assets of the banking system of these currencies, and the liquidity in local currency registers 45%.
He said that 2021 saw the business of Egyptian private and public companies double compared to 2019, and despite concerns about the impact of this period on jobs and growth rate, unemployment has declined and achieved positive results.
He noted that decisions taken in March and April contributed to 30% increase in foreign exchange earnings.