If the external debt were to increase by a dollar, a fierce storm would erupt against the government, and analyses,comments, and negative, discouraging expectations would follow in succession. However, the news of Egypt’s external debt declining to $160.6 billion at the end of March 2024, compared to $164.5 billion at the end of the first quarter of 2023/2024, has, as usual, passed unnoticed. There are no comments on the Central Bank’s statement, nor any insightful and honest analysis.
A report from the Central Bank of Egypt reveals that the country has made significant progress in reducing its external debt, paying off $23.8 billion in interest and principal over the past nine months. The Central Bank’s data, which is known for its accuracy, shows a decrease of over $3.6 billion in foreign debt. This substantial reduction is a cause for cautious optimism among economists, who are naturally inclined to temper their enthusiasm.
According to Egypt’s economic doctrine, repaying loans is a sacred duty. Throughout its history, Egypt has always honored its financial commitments, meeting its debt obligations promptly and willingly, even in the face of immense economic challenges. The country has consistently demonstrated a strong commitment to fulfilling its financial responsibilities.
A nation that endured severe economic sabotage, a global blockade, and the deliberate depletion of its resources after overthrowing a terrorist regime faced a dire crisis. Without the support of Egyptians living abroad who sent remittances,the situation could have been catastrophic. Thankfully, these remittances have not only recovered but have increased significantly, exceeding the previous levels by over 100 percent.
The decrease in foreign debt is a promising sign and a testament to the success of Egypt’s economic reforms. This positive trend is supported by reports from credit rating agencies, which have expressed confidence in Egypt’s economic stability. The Central Bank has announced that the country’s foreign exchange reserves have reached a record high of $46.383 billion, further bolstering the nation’s economic resilience.
These reserves can cover nearly eight months’ worth of commodity imports, far exceeding international benchmarks for financial safety. Despite facing severe economic challenges and ongoing reforms, Egypt has consistently met its financial obligations. Imagine the irony: those who predicted our economic collapse should see that we have successfully paid off $23.8 billion in just nine months, a remarkable achievement under such circumstances.
It is necessary to stop at the positives and explain the meanings of the above numbers, which are economically important at this time. Unfortunately, the Central Bank’s statement passed unnoticed by the malicious. Such positive reports do not gain popularity on the online platforms as they deliberately turn a blind eye to them.
For instance, the figure of the foreign reserves ($46.38 billion last June) in comparison to the value of Egypt’s foreign reserves in January 2011, which recorded only $36 billion, was a source of pride for the big analysts at the time.
