Egypt’s domestic debt surpasses two trillion pounds -c. bank

Cairo: Egypt’s domestic debt reached 2.016 trillion pounds ($261 billion) in the third quarter, the central bank said on Monday, reflecting the government’s reliance on domestic borrowing to finance its deficit.

The government is walking a fine line between trying to cut its deficit, projected at more than 10 per cent of gross domestic product (GDP) in the fiscal year that ended last week, whilst luring investors and restoring growth. Political turmoil since a 2011 uprising has hurt Egypt’s economy, but investors have welcomed painful reforms aimed at fixing the state’s finances such as slashing energy subsidies and introducing some new taxes.