The Egyptian external debt increased by 12 billion dollars in 3 months (AFP)</p><div><p>Data revealed from<a target="_blank" href="https://www.alaraby.co.uk/economy/%D9%85%D8%B5%D8%B1-%D8%A7%D8%AA%D9%87%D8%A7%D9%85-%D8%AF%D8%A7%D9%84%D9%8A%D8%A7-%D8%AE%D9%88%D8%B1%D8%B4%D9%8A%D8%AF-%D8%A8%D8%A7%D8%B3%D8%AA%D8%BA%D9%84%D8%A7%D9%84-%D9%85%D9%86%D8%B5%D8%A8-%D8%B2%D9%88%D8%AC%D9%87%D8%A7-%22%D9%85%D8%AD%D8%A7%D9%81%D8%B8-%D8%A7%D9%84%D8%A8%D9%86%D9%83-%D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A%22" rel="noopener noreferrer"> Egyptian Central Bank</a> Today, Wednesday, that <a target="_blank" href="https://www.alaraby.co.uk/%D8%A7%D9%84%D9%85%D8%B9%D8%B1%D9%88%D8%B6-%D8%A7%D9%84%D9%86%D9%82%D8%AF%D9%8A-%D9%81%D9%8A-%D9%85%D8%B5%D8%B1-%D9%8A%D8%B1%D8%AA%D9%81%D8%B9-19-%D8%B9%D9%84%D9%89-%D8%A3%D8%B3%D8%A7%D8%B3-%D8%B3%D9%86%D9%88%D9%8A" rel="noopener noreferrer">Money supply</a> (N2) in Egypt increased 18.62 percent year on year last September, while it arrived <a target="_blank" href="https://www.alaraby.co.uk/economy/%D8%B9%D9%8F%D8%B5%D9%81%D9%88%D8%B1%D8%A9-%D8%A7%D9%84%D8%A8%D9%86%D9%83-%D8%A7%D9%84%D8%AA%D8%AC%D8%A7%D8%B1%D9%8A-%D9%88%D8%A7%D9%84%D8%AF%D9%8A%D9%86-%D8%A7%D9%84%D8%AE%D8%A7%D8%B1%D8%AC%D9%8A-%D8%A7%D9%84%D9%85%D8%B5%D8%B1%D9%8A" rel="noopener noreferrer">Debts</a> State Department by the end of last June to 123.5 billion dollars.<br/>The money supply was about 4.76 trillion Egyptian pounds ($ 304.15 billion), from 4.01 trillion pounds at the end of September 2019, with an increase of about 750 billion pounds.<br/>The Egyptian Central Bank said in a statement, today, Wednesday, that the remittances of workers abroad amounted to 27.8 billion dollars in the 2019-2020 fiscal year, up from 25.2 billion dollars a year ago.<br/>The fiscal year in Egypt begins on the first of July of each year and ends at the end of June of the following year.<br/><strong>Inflated debt</strong><br/>Data issued by the Egyptian Central Bank, last Sunday, showed that the external debt rose to $ 123.5 billion at the end of last June, compared to $ 111.3 billion at the end of March 2019 and $ 108.7 billion at the end of June 2019.<br/>During the current year, Egypt witnessed an acceleration in borrowing from abroad through several tools, the most recent of which was the international green bonds that the Egyptian government listed on the London Stock Exchange earlier this month, with a value of $ 750 million, after it was scheduled to be worth $ 500 million. Up 50%.<br/>And at the beginning of this year, the Finance Ministry said it would stop issuing international bonds, but it returned to international markets last May by offering bonds worth $ 5 billion.<br/>It also borrowed $ 8 billion from the International Monetary Fund last June, amounting to $ 2.8 billion and $ 5.2 billion, in addition to another $ 2 billion from Arab and foreign banks in August.
The Ministry of Finance said in a statement, at the end of last August, that it had signed the first conventional and Islamic joint financing facility, worth two billion dollars, to finance part of the financial gap in the budget for the current fiscal year 2021/2020.
Last July, Egypt obtained loans from the African Bank for Export and Import (AFREXIM) amounting to $ 3.55 billion, in addition to about $ 300 million from the same bank to the National Bank of Egypt (the government).
During the same month, the European Investment Bank agreed to extend a loan to Egypt worth $ 2.2 billion, bringing the total loans from the two banks to about $ 6.05 billion.
Also, the expansion of borrowing at high interest rates made Egypt, according to the local economic “Enterprise” bulletin, the most profitable for interest traders among emerging markets, with the introduction of Egyptian treasury tools to nearly double the risk-adjusted return, according to the same bulletin.
The Egyptian economy is facing a stifling crisis due to the Corona pandemic, which forced the government to launch a plan to live with the virus, to reopen the economy despite the outbreak and the escalation of cases and deaths, while the health system faced several problems in dealing with the outbreak of the epidemic, which was reflected on the performance of many sectors.
Yesterday, Tuesday, economists expected that the exchange rate of the local currency would decrease to 15.8 Egyptian pounds to the dollar by the end of next December from about 15.65 pounds currently, and to decrease further to 16.5 pounds in December 2021 and 17 pounds in December 2022.
(One dollar = approximately 15.65 pounds)
(Reuters, The New Arab)