The International Monetary Fund (IMF) currently projects Egypt’s external debt to reach 36% of GDP at the end of fiscal year (FY) 2021/22, according to Celine Allard, IMF Mission Chief for Egypt.
The projection is relatively moderate compared to other emerging market countries in the world.
“In addition, out of this 36% of GDP, about 20% corresponds to public General Government external debt,” Allard said, “Thereafter, we expect it to be on a declining trend, and remain at a moderate level, even under adverse scenarios.”
She said that the IMF expects Egypt to be able to pay all its upcoming payment dues in the future.
Allard said that in terms of public external debt, the recent IMF issuances have been at relatively favourable rates and at long maturity, which help build resilience against risk. The IMF also projects international reserves to remain at appropriate levels, which is another source of buffering going forward.