(Ecofin Agency) - Egypt's financial difficulties have eased in recent months, following the acquisition of $57 billion in funding from international financial institutions and regional allies.

Egypt's external debt stock reached $168.03 billion as of December 2023, up from $164.52 billion at the end of September 2023, according to data released by the central bank on April 22.

According to the bank, this increase is due to the growth of long-term external debt, which rose to $138.551 billion at the end of December, compared to $134.2 billion in September. Short-term external debt, however, decreased to $29.482 billion at the end of December 2023, down from $30.26 billion in September. Egypt's external debt has significantly increased in recent years, primarily due to rising food and fuel import bills caused by the dual shock of the COVID-19 pandemic and the war in Ukraine.

However, the country’s financial struggles have eased in recent months, with $57 billion in funding from international financial institutions and regional allies. More than half of this total comes from a February 2024 agreement with the United Arab Emirates, reported as the largest foreign investment ever made in Egypt. This $35 billion agreement allowed Cairo to float its currency and facilitated further funding from the IMF, the European Union, the World Bank, and other institutions.

According to central bank data, Egypt will need to repay $29.23 billion in external debt in 2024, with the external debt service expected to decrease to $19.43 billion in 2025 and $22.94 billion in 2026.