Sunday, September 17, 2017

Does not this mean bigger external debt for Egypt ?

On Sunday, Reuters said that Egypt’s ministry of finance has asked the cabinet to approve two new Eurobond issuances. According to two sources that spoke with Reuters, the two Eurobond issuance will be in late 2017 and in 2018.
The first issuance will be ranged between 1-2 billion Euros before the end of 2017 while the second issuance will be ranged between from $4-8 billion in 2018.
Egypt's external debt
From Google images -_-
The Egyptian government has already sold $7 billion in 5, 10 and 30-years Eurobonds on the Luxembourg stock exchange in early 2017.
Also in November 2016, Egypt signed an agreement for a three-year $12 billion loan from the International Monetary Fund “IMF”
Now the simple question I have in my mind: Do not those new Eurobonds mean a bigger external debt for Egypt ??
The external debt of Egypt is scary right now.
It has reached in the fiscal year 2016/2017 which concluded in July to $73 billion !!
I did this graph to see the external debt of Egypt from 2010 to 2017 and it is not good.

If you think that something is wrong with the numbers, please tell me.
It seems to me that we are in a loop, the Egyptian government takes loans from here and there, issues bonds and Eurobonds in order to finance huge so-called national projects without feasibility studies and to pay other debts and loans !!
It is scary for real because this is a burden on the future generations in Egypt !!
We need this to stop.
Unfortunately, we do not have right now a responsible parliament or free media or an active civil society.
This over-growing external debt is a true threat to our national security. Anyone who is familiar with Egypt’s modern history in the 19th century knows that very well.
Personally, I hope that the cabinet rejects the request of the finance ministry but I highly doubt considering the amount of loans we receive on a monthly basis.

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