Egypt Watch

The Egyptian government aims to raise foreign funds by 87%

Press reports have indicated that Egypt plans to obtain foreign funds of about 146.4 billion pounds in the budget for the fiscal year 2022-2023, with an increase of 87% in the volume of foreign funds.

According to a document seen by press institutions, the new year’s budget aims to issue international bonds at 91.5 billion pounds and borrow 54.9 billion pounds from international financial institutions, except for the International Monetary Fund.

According to the document, foreign investments in government debt instruments fell from $34.1 billion in September to $28.8 billion in December.

The document showed that Egypt expects the average interest rate to rise from about 13.7% in the current fiscal year’s budget to 14.5%, in addition to an increase in financing needs in the new funding to 1.52 billion pounds, of which about 1.37 billion pounds are domestic financing through the issuance of debt instruments. The country’s external debt increased from $38.8 billion in 2012 to $145.5 billion in 2021. The average annual increase of Egypt’s external debt in the last three years amounted to $16 billion.