Egypt dips into foreign reserve for the first time

Minister of Planning and International Cooperation Faiza Abul Naga on Wednesday said the Egyptian government has for the first time borrowed from its foreign reserve, bringing it down from US$36 billion to US$30 billion.

She added that the Egyptian economy is in a critical condition and needs revitalization.

For his part, economy expert Fakhry al-Fiqi said the government borrowed the money in order to meet purchases of certain strategic commodities.

“Foreign currency resources have diminished due to a decline in tourism and oil and gas sales,” he explained. “This led the government to borrow from the central bank against its foreign investments.”

He added that the foreign debt stands at US$33 billion, while the local debt is LE888 billion, which constitutes 90 percent of GDP, whereas the safe percentage should not exceed 60 percent.

Translated from the Arabic Edition

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