(Ecofin Agency) - Egypt’s borrowing requirements are estimated to be EGP820.7 billion ($48 billion) for the 2019-2020 fiscal year, according to the state budget published on April 22, 2019. Compared with the 2018-2019 requirement, this represents a 26% rise.

Domestic borrowings should grow by 45% during the said fiscal year to reach EGP725.1 billion while external loans should drop by 36% to EGP95.6 billion.

Egypt plans to issue about EGP435.1 billion of treasury bonds during the 2019-2020 fiscal year representing a 24% increase compared with the volume estimated in the 2018-2019 budget.

Domestic bonds are to increase by 93% to EGP290.1 billion.

The budget also plans for the issuance of the first green bonds of this North African country whose external debt reached EGP92.64 billion during the 2017-2018 fiscal year.

In 2016, Egypt initiated reforms aimed at reviving its economy affected by turmoils that followed the downfall of president Hosni Mubarak in 2011. In return, it benefited from a $12 billion support program from the IMF.

These reforms such as the devaluation of the local currency, energy subsidies’ cut and the creation of value-added taxes helped revive economic growth while leading to a steep rise in inflation and poverty.