Egypt’s Domestic public debt rises to 3 trillion Egyptian pounds: CBE

The total domestic public debt has risen to LE3.079 trillion in the period from July to March of the fiscal year 2016/2017.

In its latest report on Thursday, the CBE broke down the figure, attributing 86.2 percent, which is the equivalent of LE2.654 trillion, to government spending.

Meanwhile, 5.9 percent of the debt has been linked to public economic bodies, rising to LE180.6 billion.

Additionally, the National Investment Bank has been found responsible for 7.9 percent of the debt, resulting in a LE244.3 billion imbalance.

In the February bulletin, 2016, the CBE said that the country’s total foreign debt increased to $67.322 billion in the first half of the fiscal year 2016-2017, ending in December 31, compared to $47.792 billion in the first half of 2015-2016.

Domestic public debt recorded LE3.252 trillion (around $166.9 billion) in 2016-2017, compared to LE2.368 trillion in the first half of the previous fiscal year.

The balance of foreign currency reserves recorded its highest level since March 2011, reaching about $28.5 billion, while the volume of cash inflows reached more than $17 billion since that date, CBE Governor Tarek Amer said in a meeting with Prime Minister Sherif Ismail on Monday.

The CBE announced the flotation of the Egyptian pound on November 3, 2016, leading to a significant increase in prices.

The success of the flotation measures was reflected in the marked improvement in the stock market’s performance, which reached its highest level ever after a six-year lull — a clear indication of foreign investors’ increased confidence in the integrity of the banking reform program and in the ability of Egypt’s economy to achieve high and sustainable growth rates, Amer added in a statement on Monday.

These positive developments also led to improved performance in the balance of payments, as indicators show a recovery in the proceeds of non-oil commodity exports and an increase in the remittances of Egyptian expatriates, according to Amer.

Amer said the CBE will issue its first report on monetary policy, including official rates for basic and for general inflation, in order to promote transparency, enhance communication with all institutions and citizens; and to address internal and external public opinion.