The Central Bank of Egypt (CBE) showed that the country’s total external debt has increased to $53.4bn in the third quarter (Q3) of fiscal year (FY) 2015/2016, compared to $39.9bn in Q3 of FY 2014/2015.

The domestic public debt also increased to EGP 2.496tn as of the end of March, compared to EGP 2.016tn year-over-year.

President Abdel Fattah Al-Sisi ordered that necessary studies be conducted before seeking loans to ensure repayment. It was an attempt to reduce the pace of borrowing, which increased significantly since Sahar Nasr was sworn in as  Minister of International Cooperation. Despite Al-Sisi’s orders, it is still very difficult to stop borrowing in light of the country’s current economic conditions.

Economists believe that the pace of borrowing will continue and will reach a critical stage within two years at most.