Egypt’s foreign debt rose by $8.1 billion in last quarter of 2021

CAIRO (Reuters) – Egypt’s web exterior debt climbed by $8.1 billion within the fourth quarter of 2021, central financial institution information confirmed on Sunday.

Egypt had been growing its borrowing to plug present account and funds deficits even earlier than Russia’s invasion of Ukraine in February and the primary U.S. Federal Reserve fee hike in March, analysts say.

Fed hikes have put stress on Egypt to boost its personal rates of interest, pushing borrowing prices larger, and the Ukrainian disaster has elevated the price of imported commodities and reduce into tourism income.

Egypt has raised its benchmark in a single day rates of interest by three proportion factors since March.

Egypt’s complete exterior debt rose to $145.5 billion on the finish of December from $137.4 billion as of the tip of September, the central financial institution information confirmed.

Overseas debt was equal to 33.2% of gross home product on the finish of December, up from 32.6% on the finish of September, the information confirmed.

(Reporting by Patrick Werr; Modifying by Hugh Lawson)