Rise os stock of debt of Egypt’s internal and external to its highest level ever recorded 1.2542 trillion pounds at the end of the previous fiscal 2010-2011, an increase of 163.3 billion pounds at the end of preceding fiscal year, ending in June 2010, and this is the largest size of the debt owed by the Egyptian State in its history
The total external debt to Egypt $ 34.9 billion, equivalent to 209.4 billion pounds at the end of fiscal year 2010 to 2011, rising foreign debt owed by Egypt, at about $ 1.2 billion, equivalent to 7.2 billion pounds, reaching $ 34.9 billion in the month of last June, compared to the end of June 2010, when it was $ 33.7 billion.
The reason for this is the exchange rates of most currencies against the dollar by the borrower or the equivalent of about U.S. $ 2.4 billion, in addition to a net repayment of loans and advances amounted to $ 1.2 billion.
The report said that domestic debt trillion barrier -1 000 billion – pounds, to reach 1.0448 trillion pounds at the end of last June, of which 77.3% was owed by the government, and 6.4% on economic public bodies and 16.3% on the National Investment Bank, compared to 888.7 billion pounds at the end of June of the fiscal year 2009-2010, an increase of 156.1 billion pounds.
The overall net balance of domestic debt due on the government about 808 billion pounds at the end of last fiscal year, ending in June, an increase of 144.2 billion pounds in fiscal year 2010-2011, the balance of the indebtedness of public economic organizations 66.8 billion, a decline of one billion pounds, while the debt The National Investment Bank of 170 billion pounds, an increase of 12.9 billion pounds.
The source said a bank official, one of the major banks operating in the domestic market, the total debt of Egypt’s internal and external, and reached the highest level in history at all, of up to 91.81% of the total GDP, which amounted to 1.3661 trillion pounds during the financial year 2010 – 2011, predicted that within two years from now will come to Egypt to the circle of danger and out of the limits of economic security, if you walked the growth rate of debt at the same rate, and no boost production of the turnover and employment in all sectors of production.
And the proportion of the burden of servicing domestic debt amounted to 13% recently, and that the danger of overshooting the total state debt of 100% of the total GDP, giving the example of Greece, which currently suffers from a severe economic crisis, due to exceeding the total debt ratio of 120%, of its GDP, and Italy, which up to 130%, stressing that Egypt will arrive to this dangerous proportions in a few years to come.
And solutions to end the current crisis, the source said, it is to find sources of fact for the national income, and entering new segments of Egyptian society to the tax base, and the criminalization of tax evasion and the application of progressive tax, and boost production, especially with what it is experiencing, the country currently blurry political landscape, and the negative economic fallout of the political situation, and fear of foreign investors from entering the Egyptian market due to the high level of risk and insecurity.