Egypt repaid US$6.4 billion in external debt servicing during the first quarter of the 2025/2026 fiscal year, down from nearly US$8 billion a year earlier, according to the central bank.
In a report, the Central Bank of Egypt said total payments reached US$6.442 billion, including US$2.078 billion in interest and US$4.363 billion in principal repayments.
The figure compares with US$7.952 billion repaid during the same period of the previous fiscal year, indicating a decline in short-term debt service obligations.
Egypt’s total external debt stood at US$163.7 billion at the end of September 2025, up from $161.23 billion in June, the bank said.
However, the external debt-to-gross domestic product ratio fell to around 42.4 percent in September, compared with 44.2 percent three months earlier, suggesting an improvement in debt sustainability metrics.
In a separate development, the central bank reported a sharp rise in net foreign assets (NFA) across the banking sector, which increased by 474.4 billion Egyptian pounds (around 64 percent growth) during the first half of the fiscal year.
The increase was driven by gains in both commercial banks and the central bank itself, with banks accounting for 339.2 billion pounds of the rise and the monetary authority contributing 135.2 billion pounds.
Analysts say the recovery in foreign assets reflects improving liquidity conditions and stronger foreign currency inflows, supported in part by investor appetite for Egyptian debt instruments.
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Foreign investors’ holdings of local treasury bills rose to the equivalent of 2.525 trillion pounds in January 2026, up from 2.449 trillion pounds a month earlier, the report said.
Remittances from Egyptians working abroad a key source of foreign currency also recorded significant growth.
According to the central bank, remittance inflows increased by 28 percent to around US$29.4 billion in the first eight months of the fiscal year, compared with approximately US$23 billion in the same period a year earlier.
On a monthly basis, remittances rose by 25.7 percent in February to about US$3.8 billion, up from roughly US$3 billion in February 2025.
The latest figures come as Egypt continues efforts to stabilise its external accounts and manage debt levels amid global economic pressures.
Authorities have sought to boost foreign currency inflows through a mix of monetary measures, investment incentives and support for key revenue streams such as remittances and portfolio inflows.
While challenges remain, including high external financing needs, the central bank’s data points to gradual improvements in key indicators underpinning Egypt’s financial position.
