Egypt never defaulted on debts – Ezz Alarab

Egypt has never defaulted on its debts and is committed to correcting its course by utilising foreign resources, Federation of Egyptian Banks (FEB) reported on Wednesday, citing chairman of Commercial International Bank of Egypt (CIB) Hisham Ezz Alarab.

He highlighted that the influx of recent dollar revenues will bolster the foreign reserves of the Central Bank of Egypt (CBE), enhance net foreign assets, and empower the central bank to manage market fluctuations.

He stated that the influx of foreign currency will result in approximately one trillion pounds in local currency, reducing the Ministry of Finance’s domestic debt and resolving the overdraft with the central bank, which has been a factor in inflation.

Ezz Alarab highlighted that this will decrease Egypt’s external debt, which was previously 16 per cent above the yield rate, to around five per cent as insurance cost, indicating an enhancement in the country’s credit rating.