Egyptian loans raise fears of impact on economy

A correspondent in Egypt

Jul 6, 2020

IMF head of delegation for Egypt Chris Jarvis (L), Egyptian Minister of Finance Amr al-Garhy (2-L) and Central Bank of Egypt chief Tarek Amer (C) attend a joint press conference in Cairo, Egypt, Aug. 11, 2016. — STR/AFP via Getty Images

CAIRO — Over the past few weeks, Egypt's foreign debt reached record numbers, after obtaining loans worth about $7.9 billion from the International Monetary Fund (IMF) under two different agreements, in addition to selling $5 billion worth of Egyptian bonds abroad.

According to the latest World Bank report on Egyptian foreign debt released in May, Egypt accumulated debts amounting to about $112 billion in 2019, an increase of 16% compared to 2018. This figure does not, however, include new debts incurred by Egypt during 2020 as the annual report only covered 2019.