The Egyptian Finance Ministry is considering offering bonds ranging between US$750 million and US$1 billion to provide the liquidity necessary to pay US dollar liabilities, a governmental source said.
Egypt's external debt (government and non-government debt) was recorded at $45.8 billion by the end of December 2013 compared to $38.8 billion by the end of December 2012, according to new report by the Finance Ministry.
Most of the increase in Egypt's external debt represented aid from the Gulf countries with concessional and preferential terms, the report added.
"External debt as percent of GDP recorded 15.5 percent by the end of December 2013, which is relatively low if compared to the average of peer countries (Middle East and North Africa countries), which recorded an average of 25.5 percent of GDP during the year 2013," the report said..
Gulf Arab states have pledged $12 billion in financial support to Egypt since the army deposed president Mohamed Morsy on 3 July following mass protests against his rule.
"This 14 percent number does not include any grants. This year's deficit we expect at 11.5 percent of GDP as we benefited from the big cash grants coming from Arab countries." finance minister Hany Kadry Dimian recently said.
Meanwhile, Standard & Poor's Ratings Services affirmed its 'B-/B' long- and short-term foreign and local currency sovereign credit ratings on the Arab republic of Egypt. The outlook is stable.
