(AFP Photo)
Egypt has paid a US $700 mn installment to the Paris Club, according to a statement on 2 January by Central Bank of Egypt (CBE) Chairman Hisham Ramez.
“A total of $700 million is to be paid to the Paris Club in January and July, based on an agreement concluded with the Egyptian government several years ago. This is in addition to the EGP 2.5 billion paid in mature bonds to Qatar, due at the end of 2014. The total foreign debt obligation for 2014…will be nearly $3.9bn,” Ramez said in an interview in December 2013.
“These obligations do not put any pressure on the (country’s) foreign currency reserves,” he added.
Ramez also said that Egypt’s foreign debt as of the end of October 2013 stood at $46.64 bn. He reiterated that Egypt has no history of defaulting on its loans and intends to fully repay its outstanding debts. Ramez also noted that the current foreign debt represents less than 15% of the GDP, one of the lowest percentages in the world.
The Paris Club is comprised of 19 developed economies. It helps borrowing states repay their debts. The participating countries include the US, UK, France, Germany, Switzerland, Australia, Austria, Belgium, Canada, Denmark, Finland, Ireland, Italy, Japan, Netherlands, Norway, Russia, Spain and Sweden.
