CAIRO: Egypt has repaid a $670 million six-month premium on the foreign debt owed to the Paris Club last Wednesday, Reuters quoted central bank governor, Hisham Ramez Tuesday.
Paris Club is 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.
In 2015, the Central Bank of Egypt (CBE) will repaid two premiums, each worth $700 million to Paris Club in January and July.
“Egypt is committed to making its foreign debt payments on time,” Ramez told Reuters.
This repayment slashed Egypt’s external debt to $39.9 billion, according to central bank monthly report.
Despite this repayement, the CBE announced Tuesday that Egypt’s net international reserves rose to $20.079 billion at June-end, around $520 million up from $19.559 billion a month earlier..
Egypt’s foreign reserves saw a severe shortfall over the past four year as tourism revenues and foreign direct investments tummled over political turmoil following the January 25 Revolution which toppled Former Minister Hosni Mubarak in 2011, when they were valued at $35.8 billion.