An Egyptian official comments on a problem that is troubling the Egyptian government regarding the annual servicing of foreign debt.

Egyptian Deputy Finance Minister Ahmed Kajouk said that the country’s external debt is 45% of public debt to finance the budget, and that “annual debt service, which has reached an alarming level, is worrying.”

Kujuk said that external debt is received from the IMF and some international banks with an average maturity of 9 years, indicating that 65% of this debt is at a fixed price.

During a conference hosted by the American University School of Business in Cairo, he added that the solution to the problem lies in the use and proper management of debt, as well as reducing external debt relative to GDP.

In his speech, he explained that “there is no country that does not have debt”, noting that it is important that we know how to manage debt and its size and create an enabling environment.”

Source: Cairo 24