Egypt’s Battle with Debt
Egypt is facing a growing debate over its debt, with some calling for it to be written off to support the economy, citing a similar scenario in 1991 after the Gulf War. Egypt's debt servicing costs reached 50.2% of government spending in the 2025-2026 budget, leading to decreased spending on health and education.
A debate is unfolding in Egypt over its debt, with some media figures calling for it to be written off to support the economy. This follows a request from Egyptian Foreign Minister Badr Abdelatty to US Secretary of State Marco Rubio for 'urgent' financial support. In 1991, the US forgave $7.1 billion in Egyptian military debts, and Gulf countries cancelled $6 billion in debts. Egypt's debt servicing costs reached 50.2% of government spending in the 2025-2026 budget. External debt exceeded $163 billion by September 2025, and the government is required to repay $50.8 billion between January and September 2026. Observers believe it would be difficult for Egypt to negotiate debt relief with its various creditors.
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