(AFP Photo)
The total external debt decreased to $40.2bn at the end of February, compared to $50bn last year, according to Central Bank of Egypt (CBE) Governor Hisham Ramez.
The new figure represents a rate of 12%-13% of Gross National Product (GDP).
On the sidelines of the Arab Banking Conference 2015 “Financing for Development” held Monday, Ramez said the ratio of external debt is in accordance with the global rate of 25% of the GDP .
Ramez added that the external debt will be increased after the new deposits, and he expected the increase of debt services coverage ratio.
The global economy is facing many challenges with falling oil prices and a decline in China’s growth rate, Ramez said.
“The foreign exchange reserves will exceed $20bn after the recent Arab deposits”, he added. “The CBE will pay the final instalment of Qatari deposits, which amounted to $1bn during the month of October.”
Ramez added that the bank will pay $700m in June to the Paris Club as part of its foreign obligations, a payment made by the bank every six months.
The Qatari deposit amounted to $6.5bn, and Ramez declared that Egypt repaid a deposit worth $2.5bn to Qatar in November based on a formal request from Doha.
During the conference, Ramez confirmed that banks express their willingness to work in Egypt’s investment sector and will open new branches in the coming period.
