Egypt repays $6.4bn in external debt service in Q1 2025/26

The Central Bank of Egypt announced that the government repaid $6.442bn in external debt service during the first quarter of the 2025/2026 fiscal year. The total includes $2.078bn in interest payments and $4.363bn in principal repayments. This compares to $7.952bn in the same period of 2024/2025.

The Central Bank of Egypt (CBE) reported that the government repaid $6.442bn in external debt service, covering both interest and principal, during the first quarter (Q1) of the 2025/2026 fiscal year, compared with $7.952bn in Q1 of 2024/2025.

The total comprises $2.078bn in interest payments and $4.363bn in principal repayments. Egypt’s external debt stood at $163.7bn in September 2025, up from $161.23bn in June 2025, while the external debt-to-GDP ratio fell to 42.4% at the end of September from 44.2% at the end of June.

In a separate development, net foreign assets (NFA) of the banking sector rose by EGP 474.4bn in the first half of the 2025/2026 fiscal year, a 64% growth rate, with EGP 339.2bn from banks and EGP 135.2bn from the central bank. Foreign investors’ holdings of local treasury bills increased to EGP 2.525trn in January 2026 from EGP 2.449trn in December 2025.

Remittances from Egyptians abroad grew 28% to $29.4bn in the first eight months of 2025/2026, compared to $23bn the previous year. On a monthly basis, they rose 25.7% in February 2026 to $3.8bn from $3bn in February 2025.

संबंधित लेख

Egypt’s current account deficit narrowed by 13.6% to $9.5bn in the first half of fiscal year 2025/26, driven by a 29.6% surge in remittances to $22.1bn, Central Bank of Egypt data shows. Tourism and Suez Canal revenues also boosted the services surplus.

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Egypt’s Central Bank reported that the banking sector’s net foreign assets dropped 7.1% in February 2026 to $27.39bn from $29.51bn in January. The decline stems from commercial banks funding a partial exit of foreign investors from local debt amid the Iran war fallout. Meanwhile, local liquidity rose to EGP 14.286trn.

The Financial Regulatory Authority released its first quarterly report showing strong growth in Egypt's investment funds sector during the first three months of 2026.

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Finance Minister Ahmed Kouchouk announced EGP 80bn allocated in the FY2026/2027 budget for programs supporting production, manufacturing, entrepreneurship, and exports. The allocation includes EGP 48bn for export rebate schemes and EGP 6.7bn for the tourism sector. Presenting the draft budget to parliament, he projected public revenues at EGP 4trn.

Egypt's Central Bank Monetary Policy Committee is expected to hold interest rates unchanged at its Thursday meeting, following cuts in December 2025 and February 2026. The decision comes amid rising core inflation and geopolitical risks. Experts describe the hold as the most prudent option to maintain stability.

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