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Egypt paid $24 billion in the first five months of 2022 to service foreign debts and to cover foreign investors withdrawing funds from the country, Egypt’s state news agency MENA reported.
Of the amount paid out, a total sum of $10 billion was expended to service its foreign debt and another $14 billion on foreign investment funds, it quoted an unnamed central bank official as saying.
Egypt has been facing foreign currency uncertainties due to interest rate hike decisions by global central bankers to combat inflation. Higher interest rates, a weak currency and broader investor wariness of emerging markets have been pushing up the government’s cost of borrowing.
Egypt has projected a $30 billion budget deficit for the financial year that will start in July.
Foreigners investing in Egyptian treasuries denominated in the local currency had been leaving Egypt even before U.S. Federal Reserve rate hikes that started in March and Russia’s invasion of Ukraine worsen the outlook.
Egyptian media last month quoted Prime Minister Moustafa Madbouly as saying $20 billion had left the country through the end of April.
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