Egypt’s Parliament has approved President Abdel Fattah Al-Sisi’s request for a $2 billion commercial loan from a consortium of regional banks, including Emirates NBD Capital Limited, Standard Chartered, Arab Banking Corporation (ABC), First Abu Dhabi Bank, Mashreq, and Emirates NBD (PJSC).
Finance Minister Ahmed Kouchouk defended the move in front of lawmakers, explaining that the loan is a strategic measure to manage the country’s external debt and address its budget deficit. He highlighted favourable terms, including competitive interest rates and improved repayment conditions, as key advantages of the agreement.
Kouchouk described the loan as a vital opportunity to stabilise Egypt’s economy, stressing that it would help maintain liquidity in hard currency and support economic recovery.
Mohamed Al-Sallab, head of the Parliament’s Industry Committee, clarified that the loan serves as a refinancing measure for previous borrowing. He commended the government’s commitment to fulfilling financial obligations while acknowledging the necessity of foreign loans for ensuring economic stability. However, he noted that Egypt must work toward reducing its reliance on external financing in the long term.
Despite the loan’s approval, it faced opposition from some lawmakers. Representative Diaa El-Din Dawoud criticised Egypt’s continued dependence on regional borrowing, calling for greater transparency in government spending. Dawoud warned that escalating national debt could jeopardise the country’s security, particularly given the ongoing regional tensions.
According to official figures, Egypt’s external debt reached approximately $152.9 billion by the end of the 2023-2024 fiscal year, compared to $46 billion when President Al-Sisi assumed office in 2014. The rise is attributed to extensive investments in large-scale projects, including a new administrative capital, infrastructure development, and arms purchases from Western nations, alongside efforts to stabilise the local currency.
While the loan is expected to provide short-term economic relief, the mounting debt shows the urgent need for sustainable economic reforms to ensure long-term stability.
