Egypt will Never Go Bankrupt

Finance Minister Momtaz al-Saeed said that Egypt is not on the verge of bankruptcy, denying reports that the country is running out of resources. Talking figures, the government has successfully paid all installments and interest rates on debt, whether local or foreign, Al-Saeed said in statements on 18/4/2012, seeing this as a sign of a strong economy. Foreign debt declined by % 3.7to $33.7 billion in December 2011, compared to $35 billion in the same period the year before, Saeed said. Egypt's foreign debt is in fact lesser than that of other countries, he concluded.

Egypt is still capable of honoring its national and international commitments, despite political changes that are resonating in the economy, Saeed insists. He said that Egypt is well aware of challenges facing the economy and is working on a reform program to restore financial stability and meet societal demands. The program, Saeed added, is also meant to increase national income and reduce unemployment.

This program was on the agenda of Egypt's talks with International Monetary Fund (IMF) experts, who stressed confidence in Cairo's ability to overcome the current stage, the minister noted. The minister pointed out that government foreign debt is part of foreign debt reaching $25.7 billion in December 2011 constituting % 10.1of Gross Domestic Product (GDP), while government net domestic debt hit % 58.5 GDP in December 2011.