Egypt’s external debt reaches $168B in 2023: World Bank

CAIRO - 4 December 2025:  Egypt’s external debt increased to $168.06 billion in 2023, up from $163.09 billion in 2022, according to the latest World Bank International Debt Report.

 This marks a significant rise over the past decade, with the country’s external debt more than tripling from $46.5 billion in 2013.

Long-term external debt accounted for $119.26 billion in 2023, compared to $111.09 billion the previous year. The bulk of this was held by the public and publicly guaranteed sector, totaling $117.38 billion. $67.86 billion of this debt was owed to official creditors, such as multilateral and bilateral lenders, while $49.52 billion was owed to private creditors.

Within the private sector, $29.80 billion was tied up in bonds, and $19.73 billion was owed to commercial banks and other private lenders. In contrast, short-term external debt slightly dropped to $29.48 billion in 2023 from $30.25 billion in 2022.

The report also shows a decline in Egypt’s use of IMF credit and Special Drawing Rights (SDRs), falling to $19.32 billion in 2023, down from $21.75 billion the year before. Since 2016, IMF-related obligations have steadily increased, with total loans to Egypt from the IMF reaching approximately $30 billion.

Several key debt ratios indicate escalating pressure on Egypt’s economy. The external debt-to-GNI ratio increased to 44.4 percent in 2023, up from 35.4 percent in 2022.

 The debt-service-to-exports ratio grew to 30.4 percent in 2023, compared to 23.2 percent in 2022, and external debt accounted for 238.6 percent of exports in 2023, up from 210.5 percent in 2022.

The report also draws attention to the global burden of external debt, particularly in developing nations. Between 2022 and 2024, these countries will pay more in debt service than they receive in new financing, the largest such gap in at least 50 years.

The World Bank’s Chief Economist, Indermit Gill, cautioned that despite improving global financial conditions, developing countries must be wary of their rising debt burdens.

These nations are restructuring large amounts of debt and facing high borrowing costs, with interest rates on new debt averaging around 10 percent, almost double pre-2020 levels.

 In 2024, developing countries are projected to pay a record $415 billion in interest, funds that could have been allocated for critical services such as education and healthcare.

With access to affordable financing becoming limited, many countries are turning to domestic markets for debt funding.

 However, this shift raises concerns about crowding out private-sector lending and exposing governments to higher refinancing costs due to shorter debt maturities.

As the global financial landscape evolves, the World Bank urges policymakers to focus on fiscal discipline and ensure long-term sustainability in debt management.