CAIRO: Egypt is set to pay back around $2.4 billion of its foreign debt owed to Paris Club and Qatar in 2016, a big challenge in light of the sharp slip in the country’s foreign reserve, Youm7 quoted a senior government official Friday.
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.
“The debt includes two six-month premiums each worth $700 million to Paris Club, scheduled in January and July. The remaining $1 billion is worth of treasury bonds owed to Doha, and should be repaid in July, 2016,” the source added.
That this payment is the last debt Cairo owes to the Gulf state, central bank’s governor Hisham Ramez, who resigned last week, told Youm7 previously.
Egypt’s net international reserves have fallen for three consecutive months to hit $16.3 billion at September-end, down from $18.1 billion a month earlier.
“The drop reflects continued dependence of Egypt’s balance of payments on external donor support, which is credit negative for the country’s external liquidity position,” global credit rating agency Moody’s Investors, stated in a report issued earlier in October.