CAIRO: Egypt repaid a $700 million six-month premium on the foreign debt owed to the Paris Club on July 4, Central Bank of Egypt (CBE) Governor Hisham Ramez told Reuters Sunday.
On January 2, CBE repaid a $700 million premium to the Paris Club, an informal group of financial officials from 19 of the world’s largest economies. The group provides financial services, including debt restructuring relief and cancellation to indebted countries and their creditors.
This premium is considered Egypt’s first foreign repayment in hard currency after President Abdel Fatah al-Sisi was inaugurated.
“Egypt did not and will not fail to repay its external debts premiums on time,” Ramez told Youm7 mid-December.
This repayment comes a few days before CBE’s monthly report on net foreign reserve by the end of June. In May, Egypt’s net foreign reserve fell from $205 million to $17.284 billion, down from $17.489 billion in April.
Egypt’s foreign reserves witnessed a sharp decline after former President Hosni Mubarak’s resignation in 2011 from $35.8 billion at the end of December in 2010 to $17.489 billion in April from $17.414 billion in March, according to CBE data.
Meanwhile, the reserve saw slight recovery after former President Mohamed Morsi’s ousting in 2013 due to the $12 billion aid pledged to Egypt form Saudi Arabia, Kuwait, and the United Arab Emirates.