Egypt to restructure debt in 2024, says Morgan Stanley

Egypt is expected to begin a debt restructuring plan next year, because of rising borrowing costs, Morgan Stanley said in a research note.

The country has sufficient reserves to meet its upcoming external debt obligations in 2024, with any potential restructuring efforts expected to be “proactive”, Egypt Today newspaper reported, citing the US investment bank.

Authorities will take a pre-emptive approach to address the issue after the country’s presidential elections, the results of which are due on Monday, as the interest expense relative to revenue is projected to remain high and will rise until 2025.

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Egypt has to pay $29.23 billion in external debt in 2024, followed by $19.43 billion in 2025 and $22.94 billion in 2026, according to data released by the Central Bank of Egypt.

The country’s net international reserves rose $72 million to $35.17 billion, the central bank said last month.

The International Monetary Fund (IMF) has indicated that it may expand Egypt’s existing $3 billion loan programme.

The IMF’s communications director, Julie Kozack, has confirmed ongoing discussions. She stressed the need for additional funds because of the continuing conflict in Gaza.