Egypt paid $ 24 billion in the first five months of 2022 to service its debt abroad and to cover foreign investors withdrawing funds from the country, according to the Egyptian state news agency, MENA.
Of that amount, $ 10 billion was used to service foreign debt and another $ 14 billion in foreign investment, according to MENA, citing an anonymous central bank official.
Higher interest rates, a weak currency and wider investor caution in emerging markets have pushed up government borrowing costs.
Egypt has forecast a budget deficit of $ 30 billion for the year beginning in July.
Foreigners investing in Egyptian bonds in local currency had left the country before the Fed raised interest rates in March and Russia’s invasion of Ukraine.
Egyptian media last month reported statements by Prime Minister Mustafa Madbuli that $ 20 billion had left the country by the end of April.
Source: Capital
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