Egypt has achieved a historic milestone in its debt management, with a staggering $14 billion reduction in external debt over the past five months, ending May.
This marks the steepest decline in the nation’s history, according to a statement released by the Egyptian press center on Monday.
Citing an unnamed high-level source at the central bank, the statement revealed that the country’s total external debt plummeted from $168 billion at the end of December to $154 billion by May.
Egypt’s debt burden has quadrupled in the last nine years as the government channeled funds into ambitious projects such as a new capital city, infrastructure development, and military acquisitions, while also propping up the local currency.
In a bid to address its financial challenges, Egypt secured an $8 billion bailout package from the International Monetary Fund in March.
Additionally, a substantial $35 billion deal was inked with Abu Dhabi in February for a prime Mediterranean coastline tract.
These financial maneuvers appear to have contributed significantly to the recent debt reduction.
As Egypt navigates its economic path, the impact of this debt reduction on its financial stability and future development plans remains a focal point for investors and analysts alike.
