Central Bank of Egypt

Transcription

1 Central Bank of Egypt External Position of the Egyptian Economy July/December 2017/18 Volume No. (60)

2 Central Bank of Egypt External Position Preface The External Position of the Egyptian Economy Report is a series produced by the Economic Research Sector in the Central Bank of Egypt (CBE). The report tracks, on a quarterly basis, the international transactions that the Egyptian economy conducts with the rest of the world. It relies, for this purpose, on the national statistics that are regularly compiled in line with the SDDS prescriptions. Enthused by the CBE keenness to enhance its disclosure, transparency and communication policy, the Report is meant to serve several functions. Generally, it spreads, to a broad array of readers, knowledge of Egypt s external accounts including the balance of payments, external debt, international investment position and external liquidity. Particularly, it monitors key external sector performance indicators of the economy in order to identify areas of policy needs. The information revealed in this series has also significant implications for decision-making, investment climate, doing-business environment and sovereign credit ratings. The report contains 6 sections. The first section gives a performance portrait of the key components of Egypt's Balance of Payments (BOP). The second and third review developments related to the International Investment Position (IIP) and external liquidity. The fourth and fifth show Egypt's external debt in its different classifications and the exchange rate developments. The last section is a statistical part that provides more details on the above mentioned five sections. This is in addition to a glossary. The report is downloadable from CBE website Hard copies can be obtained from the Economic Research Sector, 8th floor, 54 El Gomhoreya Street, Cairo.

3 Central Bank of Egypt External Position Table of Contents Overview Page Section I: Balance of Payments (BOP) BOP Performance 1 1-Current Account 1 2-Capital and Financial Account 4 Section II: International Investment Position (IIP) 7 Section III: Section IV: External Liquidity A -Net International Reserves (NIR) 9 B -Net Foreign Assets of Banks (NFA) 9 External Debt A - Breakdown by Maturity 11 B - Breakdown by Type 12 C - Breakdown by Currency 12 D - Breakdown by Creditor 13 E - Breakdown by Debtor 13 F - External Debt Indicators 14 Section V: Exchange Rate Developments 15 Section VI: Statistics Appendix I 1- Balance of Payments International Investment Position (IIP) Coordinated Portfolio Investment Survey (CPIS) NIR & NFA at Banks External Debt by Type External Debt Indicators External Debt by Debtor Foreign Exchange Rates 27

4 Central Bank of Egypt External Position Table of Contents (Cont.) Page Appendix II A- Outstanding External Debt B- Disbursed and Undisbursed Amounts for Signed Loans & Deposits 48 C- Projected Medium- and Long-Term Public and Publicly Guaranteed External Debt Service D- Projected Short-Term Debt 71 E- Exchange Rates of the Currencies of External Debt versus US Dollar 72 Appendix III Box. (1): Egypt's Subscription to SDDS and Data Quality Dimensions Box. (2): Egypt's Data Quality Dimensions 76 Box. (3): Doing Business in Egypt 77 Box. (4): Tourism Sector Performance Glossary 79

5 Central Bank of Egypt External Position Overview Aiming to place Egypt's external position on a more sustainable footing and encourage foreign investors back to the country, the CBE decided on 3 November 2016 to unpeg the Egyptian pound, allowing its value to float. Accordingly, bid and ask exchange rates would be determined by forces of demand and supply. By floating the pound, the Central Bank would eventually be able to fully dismantle FX restrictions, reducing disruptions to activity. Such a courageous move aims to quash the currency parallel market and attract the much-needed foreign capital. This Decision helped replenish international reserves through the official market. Egypt's transactions with the external world recorded an overall BOP surplus of about US$ 5.6 billion during the first half of FY 2017/2018 (against about US$ 7.0 billion in the corresponding period). The current account deficit narrowed by 64.0 percent to about US$ 3.4 billion (from about US$ 9.4 billion). The capital and financial account recorded a net inflow of about US$ 10.4 billion (against about US$ 18.7 billion). The decline in the current account deficit was mainly traceable to the following developments: the services surplus surged, recording about US$ 5.3 billion, net unrequited current transfers scaled up by 29.5 percent to about US$ 13.1 billion, the trade deficit narrowed by 1.4 percent to about US$ 18.7 billion, and the income balance ran a deficit of about US$ 3.0 billion. The capital and financial account revealed the following developments: the net inflows of FDI in Egypt registered about US$ 3.8 billion, portfolio investment in Egypt accelerated, registering a net inflow of US$ 8.0 billion, and other assets and liabilities achieved a net outflow of about US$ 5.7 billion. Egypt s International Investment Position (IIP) at end of December 2017 recorded net external liabilities (assets minus liabilities) of about US$ billion, up by 6.6 percent compared to end of June Net International Reserves (NIR) increased by US$ 5.7 billion to reach US$ 37.0 billion, thus covering 7.2 months of merchandise imports at end of December The increase was a result of the rise of foreign currencies by about US$ 5.6 billion and of gold by US$ 0.1 billion. During the Report s preparation, NIR reached US$ 44.0 billion at end of April Banks net foreign assets increased by around US$ 0.03 billion during July/ December 2017/2018. Foreign currency deposits with banks decreased by 0.2 percent during the period concerned, reaching US$ 38.4 billion at end of December As a percentage of total deposits, they made up 24.3 percent. Total external debt increased by about 4.9 percent to about US$ 82.9 billion at end of December 2017, from US$ 79.0 billion at end of June The external debt remains within manageable limits, and its position continues to have a favorable structure, as 86.6 percent of the debt are medium- and long-term. The weighted average of the interbank foreign exchange market rate revealed that the Egyptian pound interbank rate depreciated by 2.0 percent during July/Dec. 2017/2018, as the EGP reached per US dollar at end of December 2017, against EGP per US dollar at end of June 2017.

6 Section I Balance of Payments (BOP)

7 Central Bank of Egypt External Position 1 E gypt's transactions with the external world recorded an overall BOP surplus of about US$ 5.6 billion during the first half of the fiscal year 2017/2018 (against about US$ 7.0 billion in the corresponding period). The current account deficit narrowed by 64.0 percent to about US$ 3.4 billion (from about US$ 9.4 billion). The capital and financial account recorded a net inflow of about US$ 10.4 billion (against about US$ 18.7 billion). Chart (1) shows the developments in Egypt s BOP main components, on quarterly basis. US$ bn Chart (1) : Egypt's BOP Main Components Q1 Q2 Q1 Q2 2016/ /2018 Capital & Financial Account Current Account Overall Balance 1- Current Account The decline in the current account deficit was mainly traceable to the following developments: the services surplus surged, recording about US$ 5.3 billion (against about US$ 1.8 billion), net unrequited current transfers scaled up by 29.5 percent to about US$ 13.1 billion (versus about US$ 10.1 billion), the trade deficit narrowed by 1.4 percent to about US$ 18.7 billion (from about US$ 19.0 billion), and the income balance ran a deficit of about US$ 3.0 billion. BOP Performance 1.1: Trade on Goods Trade volume increased by 7.4 percent, to reach US$ 42.9 billion (18.7 percent of GDP) during July/December 2017/18. The trade deficit decreased by US$ million, to US$ 18.7 billion (8.2 percent of GDP) from US$ 19.0 billion, due to the following developments: Merchandise exports increased by 15.4 percent to US$ 12.1 billion, due to the increase in both oil exports by 29.9 percent, to reach US$ 3.8 billion (31.6 percent of total exports) and in non-oil exports by 9.7 percent to reach US$ 8.2 billion (68.4 percent of total exports). As a result, the exports/imports ratio mounted to 39.1 percent, from 35.5 percent. Merchandise imports increased by 4.5 percent to US$ 30.8 billion, reflecting the increase in both oil imports by 12.2 percent to US$ 6.0 billion (19.4 percent of total imports), and in non-oil imports by 2.9 percent to US$ 24.8 billion (80.6 percent of total imports). عنوان المحور US$ $ bn Chart (2): Oil & Non-oil Exports and Imports July/December 2015/ / /2018 oil exports non-oil exports oil imports non-oil imports Trade balance The following charts illustrate the distribution of commodity exports by degree of processing and imports by degree of use during July/December 2017/18.

8 Central Bank of Egypt External Position 2 Fuel, mineral oils & products 32.5% Fuel, mineral oils & products 20.2% Chart (3): Proceeds of Merchandise Exports US$ 12.1 bn Hereunder is the geographical distribution of merchandise exports and imports: Asian Countries (Non-Arab) 9.3% Raw materials 7.0 % Semifinished goods 16.9% Chart (4): Payments for Merchandise Imports Raw materials 9.5% US$ 30.8 bn, of which Intermediate goods 31.7% Investment goods 14.7% Finished goods 43.6% Chart (5) : Exports by Geographical Distribution July/December 2017/2018 African Countries (Non-Arab) 2.9% Arab Countries 24.5% Australia& Other Countries 11.6% USA 8.2% Russian Federation &C.I.S 0.8% EU 34.3% - Egypt's main trade partners in terms of exports were UAE, Italy, USA, UK, Turkey, Saudi Arabia, Germany, India, Switzerland, and Spain. These countries combined accounted for some 57.5 percent of total exports. Chart (6) : Imports by Geographical Distribution July/December 2017/2018 Consumer goods 21.0% Other EU Countries 8.4% Australia& - As African for imports, Other Egypt's trade EU Countries Countries 26.9% partners (Non-Arab) 13.0% were China, UAE, Saudi 1.5% Arabia, Russia, Germany, USA, Asian Other EU UK, Countries France, Switzerland, Countries Brazil, (Non-Arab) 6.4% Italy 19.6% and Turkey. These countries Russian combined, Arab accounted USA for some Countries Federation & C.I.S 20.4% 4.4% 7.8% 53.8 percent of total imports. - As for imports, Egypt's trade partners were China, UAE, Saudi Arabia, Russia, Germany, USA, UK, France, Switzerland, Brazil, Italy, and Turkey. These countries combined accounted for some 53.8 percent of total imports. 1.2: Services Balance Services surplus surged, recording US$ 5.3 billion (against US$ 1.8 billion), as the increase in services receipts outpaced the rise in services payments, as follows: US$ bn Chart (7) : Services Balance Q1 Q2 Q1 Q2 2016/ /2018 Services Receipts Services Payments Services Balance 1.2.1: Services receipts increased by 62.5 percent, to some US$ 10.7 billion (against about US$ 6.6 billion), driven by the increase in the following items: Tourism revenues to about US$ 5.0 billion (against about US$ 1.6 billion), driven by the increase in the number of tourist nights to 52.1 million nights (against 19.2 million nights). This was concurrent with the increase in the average tourist spending per night from US$ 82.5 to US$ Transportation receipts by 18.8 percent to about US$ 4.4 billion (against some US$ 3.7 billion), due to the increase in the receipts of Egyptian navigation and airline companies. Another contributing factor, the increase in Suez Canal dues by 10.1 percent to about US$ 2.8 billion (against some US$ 2.5 billion), which increased, in turn, as a result of the increase in net tonnage by 9.4 percent, and the increase of SDR against the US dollar by 2.1 percent.

9 Central Bank of Egypt External Position 3 Government services receipts to US$ million (against US$ million), due to the increase in the Arab League expenses & the international organizations located in Egypt, and the expenses of the foreign embassies in Egypt. On the other hand, Other services receipts decreased by 7.7 percent to US$ 1.1 billion (against US$ 1.2 billion), due to the fall in the fees of communication services, cultural & recreational services, legal and consultation fees. US$ bn Q1 Q2 Q1 Q2 Other Services Balance Tourism Services Balance Services Balance Chart (8): Services Balances 2016/ /2018 Government Services Balance Transportation Services Balance 1.2.2: Services payments rose by 12.0 percent, to about US$ 5.4 billion (against about US$ 4.9 billion), driven by the increase in the following items: Government services payments to US$ million (against US$ million), reflecting the increase in expenses of other government payments, salaries of governmental employees abroad, and expenses of Egyptian embassies abroad. Transportation payments by 22.9 percent, to US$ million (against US$ million), due to the rise in the amounts transferred by foreign airline and navigation companies. Other services payments by 19.3 percent, to about US$ 2.6 billion (against about US$ 2.1 billion), driven by the increase in the amounts transferred abroad by communication services, computer services, and subscription to magazines & newspapers. On the other hand, Travel payments fell by 33.3 percent to about US$ 1.2 billion (against about US$ 1.7 billion), due to the decline of e-card payments, pilgrimage (Hajj & Umrah) expenses, expenses of tourism and medical care, payments of travel agencies &hotels, and expenses of training and educational mission abroad. 1.3: Income Balance Investment income balance ran a deficit of about US$ 3.0 billion in July/Dec. 2017/18 (against some US$ 2.3 billion), as an outcome of the rise of investment income payments to register about US$ 3.5 billion (against some US$ 2.4 billion), 59.0 percent of which were profit transfers by (oil and non-oil) foreign companies operating in Egypt. Add to this the increase of investment income receipts to register US$ million (against US$ million). US$ bn Chart (9): Income Balance Q1 Q2 Q1 Q2 2016/ /2018 Income Receipts Income Payments Income Balance

10 Central Bank of Egypt External Position 4 1.4:Unrequited current transfers (Net) Net unrequited current transfers scaled up by 29.5 percent to US$ 13.1 billion (from US$ 10.1 billion), mainly due to the increase in net private transfers from US$ 10.0 billion to US$ 13.0 billion, supported by the increase in workers remittances by 29.3 percent. On the other hand, the net official transfers declined to US$ 68.3 million (from US$ 72.9 million). US$ bn Against this background, some of the external balance indicators changed as shown in chart (11). % Chart (10) : Remittances of Egyptians Working Abroad Q1 Q2 Q1 Q2 2016/ /2018 Workers' Remittances Remittances to GDP Chart (11): External Balance Indicators July/Dec Current Receipts / Current Payments Services Receipts / Services Payments 2016/ / (%) Merchandise Exports / Merchandise Imports 2- Capital and Financial Account The capital and financial account recorded a net inflow of about US$ 10.4 billion in July/Dec. 2017/18 (against some US$ 18.7 billion), as an outcome of: A- Total FDI inflows registered about US$ 6.6 billion (against US$ 7.4 billion), while total outflows recorded about US$ 2.8 billion (against about US$ 3.1 billion). Accordingly, net inflows of FDI in Egypt decreased to about US$ 3.8 billion (against about US$ 4.3 billion). It is worth mentioning that net inflows for oil sector investments increased by 16.7 percent, to post about US$ 2.1 billion (against about US$ 1.8 billion). The sectorial breakdown of total FDI inflows as depicted in chart (12) shows that the oil sector has the biggest share of 64.6 percent. As for the other sectors, the majority of FDI went to the services sectors, with 11.4 percent distributed as follows: the financial sector (2.8 percent), the real estate sector (2.5 percent), the communication and information technology (2.2 percent), tourism sector (0.3 percent), and other services sectors (3.6 percent). The share of the manufacturing sector was 10.4 percent, the construction sector was 5.7 percent, the agricultural sector was 0.1 percent, and the remaining portion was acquired by undistributed sectors.

11 Central Bank of Egypt External Position 5 Chart (12): Total FDI in Egypt by Economic Sector July/Dec. 2017/2018 Construction sector 5.7% Agriculture sector 0.1% Manufacturing sector 10.4% Petroleum sector 64.6% Undistributed sector 7.8% Services sector 11.4% Real Estate sector 2.5% Financial sector 2.8% Tourism sector 0.3% Communication sector 2.2% Other Services sector 3.6% B- Portfolio investment in Egypt augmented to unfold a net inflow of about US$ 8.0 billion (against US$ million). This was largely ascribed to the rise in foreigners' investments in the Egyptian Treasury bills, recording net purchases of about US$ 8.1 billion (against US$ million). C- Medium - and long-term loans and facilities achieved net disbursements of about US$ 3.5 billion (against about US$ 5.0 billion). D- Short-term suppliers' credit realized net drawings of about US$ 1.1 billion (against about US$ 2.0 billion). E- Other assets and liabilities achieved a net outflow of about US$ 5.7 billion (against a net inflow of about US$ 7.1 billion). This came on the back of the decline in the net change in the liabilities of the CBE to the external world, to post a net external repayment of about US$ 3.1 billion in the reporting period (against a net disbursement of about US$ 8.1 billion).

12 Section II International Investment Position (IIP)

13 Central Bank of Egypt External Position 7 International Investment Position (IIP) At end of December 2017* Egypt s IIP at end of December 2017, recorded net external liabilities (assets minus liabilities) of about US$ billion, up by 6.6 percent compared to end of June As such, Egypt s foreign assets represented about 34.5 percent of its foreign liabilities against about 33.6 percent at end of June Chart (1) US$ billion International Investment Position (IIP) End of Source: Appendix I, table (2) Dec. March June Sept. Dec Assets Liabilities Net IIP Egypt's preliminary IIP data at end of December 2017, showed an increase in both Egypt's total assets and liabilities compared to the position at end of June 2017, to record net liabilities of about US$ billion versus US$ billion. Assets and Liabilities by Component: Assets increased by 11.0 percent to reach about US$ 73.7 billion at end of December 2017, from about US$ 66.4 billion at end of June Reserve assets 49.3% Chart (2) Breakdown of Assets by Component Assets Dec 2017 Direct investment abroad 10.1% Portfolio investment 2.1% Other investment 38.5% The increase was mainly due to the following developments: - Reserve assets increased by 18.6 percent to about US$ 36.3 billion. - Other investment assets increased by about 6.2 percent, to reach about US$ 28.4 billion. - Foreign direct investments increased by 1.8 percent to about US$ 7.4 billion. - Portfolio investments abroad decreased by 9.6 percent to about US$ 1.6 billion. * Released as of September 2009 according to SDDS requirements.

14 Central Bank of Egypt External Position 8 2- Liabilities increased by 8.1 percent to about US$ billion at end of December 2017, from about US$ billion at end of June Chart (3) Breakdown of Liabilities by Component Other investment 34.7% Portfolio investment 13.9% The increase was mainly due to the following developments: - Portfolio investments in Egypt increased by 38.7 percent to about US$ 29.7 billion. - Other investment liabilities increased by 5.6 percent to about US$ 74.0 billion. - FDI in Egypt increased by 3.5 percent to about US$ billion. Indicators: Direct -20 Liabilities investment Dec in Egypt 51.4% Egypt s negative net IIP to GDP at end of September 2017 increased to about 59.6 percent, versus about 55.8 percent at end of June % Chart (4) Egypt's net IIP to GDP End of Dec. March June Sept. Dec Assets to liabilities increased to about 34.5 percent at end of December 2017, from about 33.6 percent at end of June % Chart (5) Egypt's IIP Assets/Liabilities End of Dec. March June Sept. Dec

15 Section III External Liquidity

16 Central Bank of Egypt External Position 9 External Liquidity A-Net International Reserves (NIR) The remarkable improvements in the banking system's financial position by foreign currency led to the steady accumulation of foreign currency reserves through the formal channels. During July/December 2017/2018, NIR remained on the rise, increasing by US$ 5.7 billion (against US$ 6.7 billion in the corresponding period a year earlier) to reach US$ 37.0 billion, thus covering 7.2 months of merchandise imports at end of December (US$ bn) Chart (1): NIR & Months of Imports Cov ered (Balance at End of the Month) June 2016 Dec June 2017 Dec Foreign Currencies Loans to IMF Gold Reserves/Months of Imports (Month) During the Report s preparation, NIR reached US$ 44.0 billion at end of April End of June 2017 (US$ mn) Dec Net International Reserves (1-2) Gross Official Reserves Gold SDRs Foreign Currencies Loans to IMF Reserve Liabilities 2 1 Reserves/Months of Imports B- Net Foreign Assets of Banks (NFA) Banks' net foreign assets increased by around US$ 0.03 billion during July/December 2017/2018 (against a decline of US$ 1.5 billion in the corresponding period a year earlier). Chart (2): Foreign Assets & Liabilities of Banks (US$ bn) (End of the Month) Assets Liabilities The increase was a result of the rise in foreign currencies by about US$ 5.6 billion and in gold by US$ 0.1 billion June 2016 Dec June 2017 Dec. 2017

17 Central Bank of Egypt External Position 10 Foreign currency deposits with banks decreased by 0.2 percent during the period concerned, reaching US$ 38.4 billion at end of December On the contrary, local currency deposits increased by 17.2 percent. As such, the ratio of foreign currency deposits to total deposits made up 24.3 percent at end of December Chart (3): Developments in Deposits by Local and Foreign Currencies (LE bn) ( End of the Month) (%) June 2016 Dec June 2017 Dec Foreign Currency Deposits Local Currency Deposits Growth Rate of Foreign Currency Deposits Growth Rate of Local Currency Deposits

18 Section IV External Debt

19 Central Bank of Egypt External Position 11 External Debt External debt increased by US$ 3.9 billion (4.9 percent), to post about US$ 82.9 billion at end of December 2017 (compared with about US$ 79.0 billion at end of June 2017). This increase came as a result of the rise in net disbursements of loans and facilities by US$ 2.9 billion, alongside the depreciation of most currencies of borrowing versus the US dollar by US$ 1.0 billion. A- Breakdown by Maturity By original maturity, external debt reaffirmed its usual pattern of longterm external debt predominance at end of Dec Long-term external debt accounted for US$ 56.6 billion or 68.3 percent of the total, whereas medium-term external debt reached US$ 15.2 billion or 18.3 percent and shortterm external debt accounted for the smallest portion of US$ 11.1 billion or 13.4 percent. By residual maturity 1, medium- and long-term external debt decreased, as it represented 71.4 percent of the total debt. In comparison, they accounted for 86.6 percent of the total by original maturity. Meanwhile, short-term debt showed an increase, as it represented 28.6 percent, compared to 13.4 percent classified by original maturity. External Debt by Residual Maturity at end of Dec (US$ million) 1. Short-term debt by original maturity Medium- & long-term debt maturing within one year External debt by residual maturity up to 1 year (1+2) Percentage to total external debt 28.6% Percentage to NIR 64.1% 4. Medium- & long-term debt by residual maturity Percentage to total external debt 71.4% chart (1) External Debt Structure by Original Maturity End of Dec Short-term debt 13.4% Mediumterm debt 18.3% Long-term debt 68.3% 1 While the analytical presentation of external debt by original maturity is the norm recommended in the External Debt Statistics Guide, residual maturity presentation still draws significant attention. In other words, compilation of external debt statistics based on original maturity helps in understanding the nature of capital flows; while the remaining maturity provides a profile of debt service payments, especially those falling due in the near term, and of potential liquidity risks facing the economy. Short-term debt by residual maturity comprises all components of short-term debt with original maturity of up to one year, and the amounts falling due under medium- and longterm debt by original maturity within one year or less.

20 Central Bank of Egypt External Position 12 B- Breakdown by Type Medium- and long-term external debt accounted for 86.6 percent of total debt, of which: Rescheduled bilateral debt reached about US$ 4.1 billion or 4.9 percent of total debt. Other bilateral * debt amounted to about US$ 7.0 billion or 8.4 percent. Buyers' & Suppliers' credit reached about US$ 7.5 billion or 9.1 percent of total debt. International and regional organizations' debt reached about US$ 26.0 billion or 31.4 percent of total debt. Government bonds and notes reached about US$ 8.9 billion or 10.7 percent of total debt at end of Dec These include: (i) US$ 1.0 billion of sovereign notes issued in April 2010 and falling due in 2020 & 2040, (ii) US$ 1.2 billion of the Global Medium-Term Notes (GMTN) issued in 2015 and falling due in June 2025; and (iii) US$ 6.7 billion of the Global Medium-Term Notes programme issued in 2017 and falling due in 2022, 2027 & Long-term deposits that have been placed at the CBE by some Arab countries posted US$ 17.9 billion (21.6 percent of total debt). Non-guaranteed medium- and long-term debt of the private sector registered US$ million (about 0.5 percent of total debt). Short-term debt decreased by about US$ 1.1 billion to about US$ 11.1 billion or 13.4 percent of total debt. Rescheduled bilateral debt 4.9% Private sector (Non guaranteed) 0.5% International & regional organizations 31.4% Chart (2) External Debt Structure End of Dec Long-term deposits 21.6% C- Breakdown by Currency Suppliers' & buyers' credits 9.1% Other bilateral debt 8.4% Egyptian bonds and notes 10.7% Short -term debt 13.4% Measuring the currency composition of Egypt's external debt is an important indicator that sheds light on the external debt exposure, arising from currency markets' volatility. A breakdown of the currency composition of external debt indicates that the US dollar is the main borrowing currency, with a relative importance of 64.9 percent of the total. This upward biased share of US dollar largely reflects the fact that there are other outstanding obligations in US dollar to creditors other than the USA (such as the African Development Bank (AFDB) and the International Bank for Reconstruction and Development (IBRD). Including the Liquidity Support Facility (LSF) from China Development Bank (CDB) to CBE.

21 Central Bank of Egypt External Position 13 Other important currencies accounted for 33.6 percent of the total debt, as follows: the Euro is the runner-up (13.9 percent), followed by the Special Drawing Rights * (10.7 percent, the Chinese Yuan (3.3 percent), the Kuwaiti dinar (3.0 percent) and the Japanese yen (2.7 percent). Kuwaiti dinar 3.0% Chinese Yuan 3.3% SDRs 10.7% Chart (3) External Debt Structure by Currencies End of Dec Euro 13.9% Japanese yen 2.7% Other currencies 1.5% US dollar 64.9% D- Breakdown by Creditor Distribution by creditor country indicates that 27.0 percent was owed to Arab countries (mainly Saudi Arabia, UAE, and Kuwait), and that 31.4 percent was owed to international organizations ** (mainly IBRD 9.3 percent & IMF 8.9 percent, ADF & AFDB 3.2 percent and EIB 2.9 percent). Meanwhile, 22.4 percent of Egypt's external debt with a value of US$ 18.5 billion came from China (6.0 percent) and five members of Paris Club countries; namely Germany (8.5 percent), Japan (2.6 percent), France (2.3 percent), USA (1.8 percent) and UK (1.2 percent). E- Breakdown by Debtor The structure of Egypt s external debt by debtor reveals that: - Central and local government remains the main debtor, with a share of 46.7 percent of external debt at end of Dec Its debt increased by US$ 3.8 billion to amount to US$ 38.7 billion. - Banks' external debt increased by about US$ 2.0 billion to US$ 6.1 billion. - Other sectors' debt increased by about US$ 0.9 billion to US$ 10.7 billion. - However, the monetary authority's external debt decreased by about US$ 2.9 billion to US$ 27.4 billion at end of Dec % 80% 60% 40% 20% 0% Arab countries 27.0% International & regional organizations 31.4% Chart (4) External Debt by Creditor End of Dec Egyptian bonds and notes 10.7% France 2.3% Chart (5) External Debt by Debtor End of United Kingdom 1.2% USA 1.8% Japan 2.6% China 6.0% Germany Other 8.5% countries 8.5% Dec.2016 June 2017 Dec.2017 Other Sectors Monetary Authority Banks Central & Local Government Including Egypt s allocation of SDRs by the IMF. International Monetary Fund (IMF), International Bank for Reconstruction and Development (IBRD), European Investment Bank (EIB), African Development Fund (ADF), and African Development Bank (AfDB).

22 Central Bank of Egypt External Position 14 F- External Debt Indicators* The ratio of short-term external debt to net international reserves decreased to 30.1 percent at end of Dec (from 49.2 percent at end of Dec. 2016). In addition, its ratio to total debt registered 13.4 percent (against 17.7 percent). As for the external debt in terms of international comparison, the debt is within manageable limits. Based on IMF classification **, comparing Egypt's key debt indicators with those of other regional country groups shows that: - Egypt's debt stock to GDP represented 36.1 percent at end of Dec (61.9 percent for Emerging and Developing Europe and 42.2 percent for Middle East and North Africa). - Egypt's short-term external debt to total external debt at end of Dec represented 13.4 percent (20.7 percent for Emerging and Developing Europe, and 28.2 percent for Middle East and North Africa). Debt service reached US$ 8.6 billion during July/Dec. 2017/2018 (US$ 7.5 billion for principal repayments and US$ 1.1 billion for interest payments) % during July / Dec % Chart (6) External Debt Indicators End of Dec Government External Debt / External Debt External Debt /GDP Short-term Debt / Net International Reserves Short-term Debt / Total External Debt 2014/ / /2017 Debt Service / Current Receipts (including transfers) Debt Service / Exports of Goods and Services - Egypt's debt-service ratio *** registered 37.7 percent during July/Dec. 2017/2018 (51.4 percent for Emerging and Developing Europe, and 30.9 percent for Middle East and North Africa). * For more indicators, refer to appendix I, table No. 6. ** Source: World & Regional Economic Outlook Reports, Oct. 2017, and CBE database. *** Debt-Service Ratio: The ratio of debt service (interest and principal payments due) during a year, expressed as a percentage of exports (typically of goods and services) for that year. This ratio is considered to be a key indicator of a country s debt burden.

23 Section V Exchange Rate Developments

24 Central Bank of Egypt External Position 15 Exchange Rate Developments On the 3 rd November 2016, the CBE took the decision of the liberalization of the Egyptian pound exchange rate, to be quoted according to the dynamics of supply and demand. This decision comes in line with the economic reform program. (i) Inter-bank Rate 1 : During July/Dec. 2017/18, the exchange rates of most of foreign currencies depreciated against the Egyptian pound. The weighted average of the US dollar in the Egyptian inter-bank market depreciated by 2.0 percent to record EGP at end of Dec. 2017, (against EGP at end of June 2017). (ii) Market Rate: At end of Dec. 2017, according to the foreign exchange market (buying price), most of the foreign currencies decreased against the Egyptian pound. To illustrate, the Swiss Franc decreased by 3.2 percent, Japanese yen (100) by 2.6 percent, US dollar, UAE dirham, and Saudi riyal by 2.0 percent each, and Kuwaiti dinar by 1.6 percent. On the other hand, the Euro increased by 3.8 percent, Sterling pound by 3.2 percent, and Chinese yuan by 2.5 percent. 1 The inter-bank foreign exchange market was launched in Egypt in December 2004.

25 Section VI Statistics

26 Central Bank of Egypt External Position Appendix I Table Page I- Balance of Payments BOP Current Account BOP Capital and Financial Account (contd.). 20 II- International Investment Position (IIP) 2 21 III- Coordinated Portfolio Investment Survey (CPIS) 3 22 IV- External Liquidity NIR & NFA at Banks V- External Debt External Debt by Type External Debt Indicators. External Debt by Debtor. VI- Exchange Rate Developments Foreign Exchange Rates

27 Central Bank of Egypt - External Position 19 Table (1) Balance of Payments (US$ mn) July /December 2016/2017* 2017/2018* Trade Balance Exports** Petroleum Other Exports Imports** Petroleum Other Imports Services Balance Receipts Transportation of which: Suez Canal Travel Government receipts Other Payments Transportation Travel Government Expenditures Other Income Balance Income receipts Income payments of which: Interest paid Transfers (Net) Private Transfers (Net) of which: Workers' Remittances Official Transfers (Net) Current Account Balance

28 Central Bank of Egypt - External Position 20 Table (1) Balance of Payments (contd.) (US$ mn) July /December 2016/2017* 2017/2018* Capital & Financial Account Capital Account Financial Account Direct Investment Abroad Direct Investment in Egypt (Net) Portfolio Investment Abroad (Net) Portfolio Investment in Egypt (Net) of which: Bonds Other Investment (Net) Net Borrowing M&L-Term Loans (Net) Drawings Repayments MT-Suppliers' Credit (Net) Drawings Repayments ST-Suppliers' Credit (Net) Other Assets Central Bank Banks Other Other Liabilities Central Bank Banks Net Errors & Omissions Overall Balance Change in CBE Reserve Assets,Increase(-) * Preliminary. ** Include free zones exports and imports.

29 Central Bank of Egypt - External Position 21 Table (2) International Investment Position (IIP) (US$ mn) End of June 2017 December 2017* Assets Liabilities Assets Liabilities Total Direct investment Portfolio investments Equity security Debt security Other investments Trade credits General government Long-term Short-term Other sectors Long-term Short-term Loans Monetary authorities Use of Fund credit & loans from the Fund Other long-term Short-term General government Long-term Short-term Banks Long-term Short-term Other sectors Long-term Short-term Currency and deposits Monetary authorities Long-term Short-term General government Long-term Short-term Banks Long-term Short-term Other sectors Long-term Short-term Other assets / Liabilities Monetary authorities Long-term Short-term General government Banks Other sectors Reserves assets * Preliminary.

30 Central Bank of Egypt - External Position 22 Table (3) Egypt's Coordinated Portofolio Investement Survey (CPIS) at end of December 2017 Breakdown of portfolio investment Assets by country of residence of the Issuers (US$ mn) Country of non-resident issuers Equities long-term debt securities short-term debt securities Total Bahamas Bahrain Belgium Canada China, P.R. Mainland Cyprus Czech Republic Ethiopia France Germany Guernsey Holand Hong Kong Indonesia Italy Japan Jordan Kuwait Lebanon Luxembourg Malaysia Malta Nigeria Saudi Arabia Singapore Spain Syrian Arab Republic Sudan Sweden Switzerland Tunisia Turkey United Arab Emirates United Kingdom United States International Organizations Total

31 Table (4) Net International Reserves & Net Foreign Assets at Banks (US$ mn) End of June 2015 Dec June 2016 Dec June 2017 Dec Net International Reserves (1-2) Gross Official Reserves Gold SDRs Foreign Currencies Loans to IMF Reserve Liabilities Banks' Net Foreign Assets Central Bank of Egypt - External Position Assets Liabilities

32 End of December Total External Debt* Medium & Long term debt : Rescheduled bilateral debt ** ODA Non-ODA Other bilateral debt Paris Club countries Other countries International & regional organizations Suppliers' & buyers' credits Egyptian bonds and notes Long- term deposits Private sector debt (non-guaranteed) Short-term debt Deposits Other short-term facilities Source: Central Bank of Egypt. + Provisional ++ Liquidity Support Facility (LSF) has been moved to Other bilateral debt (other countries) instead of suppliers' & buyers' credit. * The difference from World Bank data is in short-term debt. ** According to the agreement signed with Paris Club countries on May 25, Table (5) External Debt by Type (US$ mn) Central Bank of Egypt - External Position 24

33 Table (6) External Debt Indicators July / December 2013/ / / / / External Debt /GDP* (at current market prices) % External Debt / Exports (G&S) (annually) % Short-term Debt / External Debt % Short-term Debt / Net International Reserves % Debt Service / Exports (G&S) % Debt Service / Current Receipts % Interest / Exports (G&S) % External Debt per Capita (US$) Provisional * The GDP for the year ended in each quarter is calculated according to the quarterly data provided by the Ministry of planning, Monitoring and Adminstrative Reform. It is evaluated in US dollar according to the average exchange rate during the same period. Central Bank of Egypt - External Position 25

34 Central Bank of Egypt - External Position 26 Table (7) External Debt by Debtor (US$ mn) End of June 2017 % December 2017 * % Change +/ (-) % External Debt Total Medium- & Long-Term Total Short-Term (1146.0) (9.3) Central & Local Government Medium- & Long-Term Bonds & Notes (103.0) (1.1) Loans Currency and Deposits Other Liabilities Short-Term Money Market Instruments Loans Currency and Deposits Other Liabilities Monetary Authority (2921.0) (9.6) Medium- & Long-Term (679.6) (3.1) Bonds & Notes Loans (81.2) (3.4) Currency and Deposits (631.3) (3.4) Other Liabilities Short-Term (2241.4) (27.4) Money Market Instruments Loans (2155.3) (40.4) Currency and Deposits (86.1) 0.0 Other Liabilities Banks Medium- & Long-Term Loans Bonds & Notes Loans Currency and Deposits Other Liabilities Short-Term Loans Money Market Instruments Loans Currency and Deposits Other Liabilities Other Sectors Medium- & Long-Term Loans from Direct Investors Bonds & Notes Trade Credits Loans Currency and Deposits Other Liabilities Short-Term (83.8) (2.8) Loans from Direct Investors Money Market Instruments Trade Credits (83.8) (2.8) Loans Currency and Deposits Other Liabilities * Provisional.

35 Table (8) Foreign Exchange Rates (In LE per foreign currency unit) End of June 2017 December 2017 First: Interbank Rates * Weighted average Second : Market Rates Buy Sell Buy Sell US Dollar Euro Pound Sterling Swiss Franc Japanese Yens Saudi Riyal Kuwaiti Dinar UAE Dirham Chinese Yuan Source: CBE daily exchange rates. * The interbank rates were launched on December 23, Central Bank of Egypt - External Position 27

36 Central Bank of Egypt External Position I- Outstanding External Debt Appendix II Table Outstanding Stock Outstanding Stock by Creditor Country Medium- and Long-Term Public & Publicly Guaranteed External Debt By Creditor: a. Paris Club Debt 3 35 (1) Rescheduled Debt 4 36 (2) Non-Rescheduled Debt b. Suppliers' Credit c. Non- Paris Club Debt d. Multilateral Institutions 8 41 e. Bonds & Notes f. Deposits Medium- and Long-Term Private Sector Non-Guaranteed External Debt by Creditor Country Short-Term External Debt II- Outstanding External Debt By Currency III- Disbursed and Undisbursed Amounts for Signed Loans & Deposits IV- Projected Medium- and Long-Term External Debt Service 1- External Debt Service Public and Publicly Guaranteed a- Paris Club Debt (1) Rescheduled Debt (2) Non-Rescheduled Debt b- Suppliers' Credit c- Non- Paris Club Debt d- Multilateral Institutions Sovereign Notes Global Medium Term Notes (GMTN) Global Medium Term Notes Programme Global Medium Term Notes Programme Global Medium Term Notes Programme Global Medium Term Notes Programme Global Medium Term Notes Programme Global Medium Term Notes Programme Medium- and Long-Term Deposits for Kuwait Medium- and Long-Term Deposits for Libya Medium- and Long-Term Deposits for Saudi Arabia Medium- and Long-Term Deposits for United Arab Emirates V- Projected Short-Term Debt VI- Exchange Rates of the Currencies of External Debt Versus US Dollar Page

37 Central Bank of Egypt - External Position Medium-and Long-Term Public (US$ million) Total Debt & Publicly Guaranteed Debt 37, , , , (1) A. Paris Club Debt 10, , , , Rescheduled Debt 7, , , , Non Rescheduled Debt 3, , , , B- Supplier's Credit C. Non-Paris Club Debt 2, , , , D. Multilateral Institutions 12, , , , (2) E. Bonds &Notes 3, , , , Guaranteed Notes 1, Sovereign Notes Saudi Bond Euro-Medium Term Notes ( E.M.T.N.) 1, , Global Medium Term Notes ( G.M.T.N.) , , , (3) 6- Global Medium Term Notes Programme , (4) F. Deposits 9, , , , (5) 2- Medium and Long-Term Private Sector Non-Guaranteed Short-Term Debt 3, , , , Currency and Deposits (Non-Residents) 1, , , , (6) Trade Credits 2, , , , Loans , , (7) Grand Total 41, , , , Using end of period exchange rate. (1) Includes US$ 7, million buyer credits and US$ 1,000 million representing China facility agreement. (2) Includes US$ 6, million representing extended fund facility by IMF ( First Tranch amounted SDR 1, million, Second Tranch amounted SDR million, Third Tranch amounted SDR 1, million) and US$ 1, million representing SDR allocation by IMF to its member countries, Egypt s share is SDR million. (3) Representing Global Medium Term Notes ( G.M.T.N.) with nominal value US$ 1500 million ( non-residents' subscriptions amounted US$ 1, million ). (4) Representing Global Medium Term Notes Programme with nominal value US$ 7,000 million (non-residents' subscriptions amounted US$ 6, million). (5) Representing Saudi, Libya, United Arab Emirates & Kuwait deposits amounted to US$ 7500, 500, and 4000 million respectively. (6) Includes US$ million representing Chinese Currency Swap Arrangement. (7) Includes Repo Transaction amounted US$ 3,100 million Figure 1-1 Table ( 1 ) Outstanding Stock as at End of December External Debt Outstanding Stock as at End of December ( US$bn )

38 Figure 1-2 Supplier's Credit 0.01% Non-Paris Club Debt 5.60% Outstanding Stock as at End of December 2017 Short-Term Debt 13.43% Private Sector Non- Guaranteed 0.49% Paris Club Debt 16.74% Central Bank of Egypt - External Position Deposits 21.60% Multilateral Institutions 31.41% Bonds & Notes 10.72% 32

39 Central Bank of Egypt - External Position 33 Creditor Countries Table ( 2 ) Outstanding Stock as at End of December Total Debt (US$ million) (1) Germany 3, , , , Japan 2, , , , China , , France 1, , , , United States 2, , , , Kuwait Italy United Arab emirates Saudi Arabia United Kingdom Bahrain Spain Denmark Belgium Austria The Netherlands Canada Qatar Switzerland Finland Norway Sweden Australia Turkey 1, Multilateral Institutions (2) 12, , , , Deposits, Bonds and Notes Deposits 9, , , , Saudi Arabia 3, , , , United Arab Emirates 2, , , , Kuwait 2, , , , Libya 2, , , Guaranteed Notes 1, Sovereign Notes Saudi Bond Euro-Medium Term Notes ( E.M.T.N.) Global Medium Term Notes ( G.M.T.N.) , , , Global Medium Term Notes Programme , Medium and Long-Term Private Sector Non-Guaranteed Short-Term Debt 3, , , , African Export - Import Bank , Currency Swap Agreement (China) , , REPO Transactions , , Arab Trade Financing Program Others 3, , , , Grand Total 41, , , , (1) Using end of period exchange rate. (2) Includes US$ 6, million representing extended fund facility by IMF ( First Tranch amounted SDR 1, million, Second Tranch amounted SDR million, Third Tranch amounted SDR 1, million) and US$ 1, million representing SDR allocation by IMF to its member countries, Egypt s share is SDR million.

40 Figure 2 Bonds &Notes 10.72% Japan 2.60% Germany 8.21% Outstanding Stock as at End of December 2017 China 2.53% Deposits 21.60% France 2.08% Others 7.42% Multilateral Institutions 31.41% Short-Term Debt 13.43% Central Bank of Egypt - External Position 34

41 Central Bank of Egypt - External Position 35 Table ( 3 ) (1) Medium and Long-Term Public & Publicly Guaranteed External Debt By Creditor Country Paris Club Debt Outstanding Stock as at End of December (US$ million) (2) Country Germany 3, , , , Japan 2, , , , France 1, , , , United States 2, , , , Italy United Kingdom Spain Denmark Belgium Austria The Netherlands Canada Switzerland Finland Norway Sweden Australia Grand Total 10, , , , (1) This table sums up tables 4 and 5. (2) Using end of period exchange rate. Figure 3 Total Debt Medium and Long-Term Public & Publicly Guaranteed External Debt Paris Club Debt Outstanding Stock as at End of December 15.0 ( US$bn )

42 Central Bank of Egypt - External Position 36 Table ( 4 ) Medium and Long-Term Public & Publicly Guaranteed External Debt By Creditor Country Paris Club Debt Rescheduled Debt Outstanding Stock as at End of December Country Total Debt (US$ million) (1) Germany 1, , , , Japan 1, , , , United States 1, , , , France 1, The Netherlands Spain Denmark Italy Canada Austria United Kingdom Switzerland Belgium Norway Sweden Australia Grand Total 7, , , , (1) Using end of period exchange rate. Figure 4 Medium and Long-Term Public & Publicly Guaranteed External Debt Paris Club Debt Rescheduled Debt Outstanding Stock as at End of December 8.0 ( US$bn )

43 Central Bank of Egypt - External Position 37 Table ( 5 ) Medium and Long-Term Public & Publicly Guaranteed External Debt By Creditor Country Paris Club Debt Non-Rescheduled Debt Outstanding Stock as at End of December Country Total Debt (US$ million) (1) Germany 1, , , , France , Japan , Italy United States United Kingdom Spain Belgium Denmark Austria Switzerland Finland Sweden Grand Total 3, , , , (1) Using end of period exchange rate. Figure 5-1 Medium and Long-Term Public & Publicly Guaranteed External Debt Paris Club Debt Non-Rescheduled Debt Outstanding Stock as at End of December ( US$bn )

44 Figure 5-2 Non Rescheduled Debt 70.74% Medium and Long-Term Public and Publicly Guaranteed External Debt Paris Club Debt Outstanding Stock as at End of December 2017 Rescheduled Debt 29.26% Central Bank of Egypt - External Position 38

45 Central Bank of Egypt - External Position 39 Table ( 6 ) Medium and Long-Term Public & Publicly Guaranteed External Debt By Creditor Country Supplier's Credit Outstanding Stock as at End of December (US$ million) (1) Total Debt Country Canada Italy Japan Grand Total (1) Using end of period exchange rate. Figure Medium and Long-Term Public &Publicly Guaranteed External Debt Supplier's Credit Outstanding Stock as at End of December ( US$mn )

46 Central Bank of Egypt - External Position 40 Table ( 7 ) Medium and Long-Term Public & Publicly Guaranteed External Debt By Creditor Country Non-Paris Club Debt Outstanding Stock as at End of December Country Total Debt (US$ million) (1) China , , {(2) Kuwait United Arab Emirates Saudi Arabia Bahrain Qatar Turkey 1, Grand Total 2, , , , (1) Using end of period exchange rate. (2) Includes US$ 1000 million representing China facility agreement. Figure Medium and Long-Term Public & Publicly Guaranteed External Debt Non-Paris Club Debt Outstanding Stock as at End of December ( US$bn )

47 Central Bank of Egypt - External Position 41 Table ( 8 ) Medium and Long-Term Public & Publicly Guaranteed External Debt Multilateral Institutions Outstanding Stock as at End of December Creditor Total Debt (US$ million) (1) IBRD 3, , , , IMF (2) 1, , , , African Development Bank 1, , , , European Investment Bank 1, , , , Arab Fund for Economic and Social Development 1, , , , African Export - Import Bank , Arab Monetary Fund IDA 1, Islamic Development Bank OPEC European Bank For Reconstruction and Development International Islamic Trade Finance Corporation African Development Fund International Fund for Agricultural Development Arab Petroleum Investments Corporation (APICORP) Clean Technology Fund Green Fund Islamic Corporation for Development Arab Trade Financing Program Grand Total 12, , , , (1) Using end of period exchange rate. (2) Includes SDR allocations by IMF to its member countries; Egypt s share is SDR MN. Figure 8-1 Medium and Long-Term Public & Publicly Guaranteed External Debt Multilateral Institutions Outstanding Stock as at End of December ( US$bn )

48 Figure 8-2 IBRD 29.61% Islamic Development Bank 2.18% African Development Bank 9.56% African Export - Import Bank 4.62% Medium and Long-Term Public & Publicly Guaranteed External Debt Multilateral Institutions Outstanding Stock as at End of December Others 4.64% AMF 3.01% IMF 28.42% I.D.A 2.83% European Investment Bank 9.34% Arab Fund for Economic and Social Development 5.79% Central Bank of Egypt - External Position 42

49 Central Bank of Egypt - External Position 43 Table ( 9) Bonds & Notes Outstanding Stock as at End of December Total Debt (US$ million) Global Medium Term Notes Programme , Global Medium Term Notes ( G.M.T.N.) , , , Sovereign Notes Saudi Bond Euro-Medium Term Notes ( E.M.T.N.) 1, , Guaranteed Notes 1, Grand Total 3, , , , Figure 9 Bonds & Notes Outstanding Stock as at End of December ( US$bn )

50 Central Bank of Egypt - External Position 44 Table ( 10 ) Medium and Long-Term Deposits Outstanding Stock as at End of December Country Total Debt (US$ million) Saudi Arabia 3, , , , United Arab Emirates 2, , , , Kuwait 2, , , , Libya 2, , , Grand Total 9, , , , Figure 10 Medium and Long-Term Deposits Outstanding Stock as at End of December 20 ( US$bn )

51 Central Bank of Egypt - External Position 45 Table ( 11 ) Medium and Long-Term Private Sector Non-Guaranteed External Debt By Creditor Country Outstanding Stock as at End of December Country Total Debt (US$ million) (1) Multilateral Institutions Kuwait Germany France Bahrain Luxembourg Grand Total (1) Using end of period exchange rate. Figure 11 Medium and Long-Term Private Sector Non-Guaranteed External Debt Outstanding Stock as at End of December ( US$mn )

52 Central Bank of Egypt - External Position 46 Table ( 12 ) Short-Term Debt Outstanding Stock as at End of December (US$ million) (1) Total Debt Short-Term Debt Loans , , Currency and Deposits (Non-Residents) 1, , , , (2) (3) Trade Credits 2, , , , Grand Total 3, , , , (1) Using end of period exchange rate. (2) Includes Repo Transaction amounted US$ 3,100 million. (3) Includes US$ 2, million representing Chinese Currency Swap Arrangement. Figure 12 Short-Term Debt Outstanding Stock as at End of December ( US$bn )

53 Central Bank of Egypt - External Position 47 Table ( 13 ) Outstanding Stock as at End of December (US$ million) (*) Currency Total Debt US Dollar 25, , , , EURO 7, , , , Special Drawing Rights 2, , , , Chinese Yuan , , Kuwaiti Dinar 2, , , , Japanese Yen 2, , , , Saudi Riyal Egyptian Pound Swiss Franc Danish Kroner Canadian Dollar U.A.E. Dirham British Pound Sterling Norwegian Kroner Swedish Kroner Australian Dollar Total 41, , , , (*) Using end of period exchange rate.

54 Central Bank of Egypt - External Position 48 Table ( 14 ) Medium and Long-Term Disbursed and Undisbursed Amounts for Signed Loans and Deposit from 1/1/2015 to 31/12/2017 Signed Amount Disbursed Undisbursed 1- Medium and Long-Term Public & Publicly Guaranteed Debt 40, , , A. Paris Club (Non-Rescheduled Debt) 8, , , B. Non-Paris Club Debt 5, , , C. Multilateral Institutions 16, , , D. Deposits 11, , Medium and Long-Term Private Sector Non-Guaranteed Debt Grand Total 41, , , (1) Using end of period exchange rate. Figure 12 Medium and Long-Term Disbursed and Undisbursed Amounts for Signed Loans and Deposits from 1/1/2015 to 31/12/2017 (US$ million) (1) ( US$mn ) 18, , , , , , , , , Paris Club (Non- Rescheduled Debt) Non-Paris Club Debt Multilateral Institutions Deposits Signed Amount Disbursed Undisbursed Private Sector Non- Guaranteed Debt

55 Central Bank of Egypt - External Position 49 Period Principal Interest Total Period Principal Interest Total 2018/H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H , /H /H /H /H /H , /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H Grand Total 70, (2) 16, (3) 86, (1) The exchange rate of December 31, Table ( 15 ) Projected Medium and Long-Term Public & Publicly Guaranteed External Debt Service as of January 1, 2018 (2) Excludes US$ million representing SDR allocation by IMF to its member countries, Egypt s share is SDR MN. (3) Includes US$ million representing forecast interest of SDR allocation. (US$ million) (1)

56 Figure 15 US$ mn 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Medium and Long-Term Public and Publicly Guaranteed External Debt Service as of January 1, 2018 Principal Interest Total Central Bank of Egypt - External Position 50

57 Central Bank of Egypt - External Position 51 (US$ million) (1) Period Principal Interest Total Period Principal Interest Total 2018/H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H Grand Total 13, , , (1) The exchange rate of December 31, Table ( 16 ) Projected Medium and Long-Term Public & Publicly Guaranteed External Debt Service Paris Club Debt as of January 1, 2018

58 Figure 16 US$ mn Medium and Long-Term Public and Publicly Guaranteed External Debt Service as of January 1, 2018 Paris Club Debt Principal Interest Total Central Bank of Egypt - External Position 52

59 Central Bank of Egypt - External Position 53 Table ( 17 ) Projected Medium and Long-Term Public & Publicly Guaranteed External Debt Service as of January 1, 2018 Paris Club Debt Rescheduled Debt (US$ million) (1) Period Principal Interest Total Period Principal Interest Total 2018/H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H Grand Total 4, , (1) The exchange rate of December 31, 2017.

60 Central Bank of Egypt - External Position 54 Period Principal Interest Total Period Principal Interest Total 2018/H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H Grand Total 9, , (1) The exchange rate of December 31, Table ( 18 ) Projected Medium and Long-Term Public & Publicly Guaranteed External Debt Service as of January 1, 2018 Paris Club Debt Non-Rescheduled Debt (US$ million) (1)

61 Central Bank of Egypt - External Position 55 Table ( 19 ) Projected Medium and Long-Term Public & Publicly Guaranteed External Debt Service Supplier's Credit as of January 1, 2018 (US$ million) (1) Period Principal Interest Total Period Principal Interest Total 2018/H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H Grand Total (1) The exchange rate of December 31, 2017.

62 Central Bank of Egypt - External Position 56 Table ( 20 ) Projected Medium and Long-Term Public & Publicly Guaranteed External Debt Service as of January 1, 2018 Non-Paris Club Debt (US$ million) (1) Period Principal Interest Total Period Principal Interest Total 2018/H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H Grand Total 4, , (1) The exchange rate of December 31, 2017.

63 Central Bank of Egypt - External Position 57 (US$ million) (1) Period Principal Interest Total Period Principal Interest Total 2018/H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H Grand Total 24, (2) 4, (3) 28, (1) The exchange rate of December 31, Table ( 21 ) Projected Medium and Long-Term Public & Publicly Guaranteed External Debt Service as of January 1, 2018 Multilateral Institutions (2) Excludes US$ 1, million representing SDR allocations by IMF to its member countries; Egypt s share is SDR MN. (3) Includes US$ million representing forecast interest of SDR allocation.

64 Figure 21 US$ mn Total Medium and Long-Term Public and Publicly Guaranteed External Debt Service Multilateral Institutions as of January 1, Principal Interest Total Central Bank of Egypt - External Position 58

65 Central Bank of Egypt - External Position 59 Table ( 22 ) Projected Sovereign Notes (*) Debt Service as of January 1, 2018 Period Principal Interest Total Period Principal Interest Total 2018/H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H Grand Total , (*) Consists of Two Notes The Sovereign Note Nominal Value Amounted US$ 1000 MM, Interest Rate is Fixed 5.75 % issued on 29/4/2010 and due on 29/4/2020. The Sovereign Note Nominal Value Amounted US$ 500 MM, Interest Rate is Fixed % issued on 30/4/2010 and due on 30/4/2040. (US$ million)

66 Central Bank of Egypt - External Position 60 Table ( 23 ) Projected Global Medium Term Notes (G.M.T.N.) (*) Debt Service as of January 1, 2018 Period Principal Interest Total (US$ million) 2018/H /H /H /H /H /H /H /H /H /H /H /H /H /H /H1 1, , Grand Total 1, , (*)The Projected Global Medium Term Notes (G.M.T.N.) Nominal Value Amounted US$ 1500 MM,The Applicable Interest Rate is Fixed : %, issued on 11/6/2015 and due on 11/6/2025.

67 Central Bank of Egypt - External Position 61 Table ( 24 ) Projected Global Medium Term Notes Programme (*) Debt Service as of January 1, 2018 Period Principal Interest Total (US$ million) 2018/H /H /H /H /H /H /H /H /H1 1, , Grand Total 1, , (*)The Global Medium Term Notes Programme Nominal Value Amounted US$ 1750 MM,The Applicable Interest Rate is Fixed : %, issued on 31/1/2017 and due on 31/1/2022.

68 Central Bank of Egypt - External Position 62 Table ( 25 ) Projected Global Medium Term Notes Programme (*) Debt Service as of January 1, 2018 Period Principal Interest Total (US$ million) 2018/H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H Grand Total , (*)The Global Medium Term Notes Programme Nominal Value Amounted US$ 1000 MM,The Applicable Interest Rate is Fixed : %, issued on 31/1/2017 and due on 31/1/2027.

69 Central Bank of Egypt - External Position 63 Table ( 26 ) Projected Global Medium Term Notes Programme (*) Debt Service as of January 1, 2018 (US$ million) Period Principal Interest Total 2018/H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H1 1, , Grand Total 1, , , (*)The Global Medium Term Notes Programme Nominal Value Amounted US$ 1250 MM,The Applicable Interest Rate is Fixed : %, issued on 31/1/2017 and due on 31/1/2047.

70 Central Bank of Egypt - External Position 64 Table ( 27 ) Projected Global Medium Term Notes Programme (*) Debt Service as of January 1, 2018 Period Principal Interest Total (US$ million) 2018/H /H /H /H /H /H /H /H /H Grand Total (*)The Global Medium Term Notes Programme Nominal Value Amounted US$ 750 MM,The Applicable Interest Rate is Fixed : %, issued on 31/5/2017 and due on 31/1/2022.

71 Central Bank of Egypt - External Position 65 Table ( 28 ) Projected Global Medium Term Notes Programme (*) Debt Service as of January 1, 2018 Period Principal Interest Total (US$ million) 2018/H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H1 1, , Grand Total 1, , (*)The Global Medium Term Notes Programme Nominal Value Amounted US$ 1000 MM,The Applicable Interest Rate is Fixed : %, issued on 31/5/2017 and due on 31/1/2027.

72 Central Bank of Egypt - External Position 66 Table ( 29 ) Projected Global Medium Term Notes Programme (*) Debt Service as of January 1, 2018 Period Principal Interest Total 2018/H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H /H1 1, , Grand Total 1, , , (*)The Global Medium Term Notes Programme Nominal Value Amounted US$ 1250 MM,The Applicable Interest Rate is Fixed : %, issued on 31/5/2017 and due on 31/1/2047. (US$ million)

73 Central Bank of Egypt - External Position 67 Table ( 30 ) Projected Medium and Long-Term Deposits for Kuwait as of January 1, 2018 (US$ million) Period Principal Interest Total 2018/H /H2 2, , /H /H /H Grand Total 4, (*) Consists of Two Deposits : (*) , The First Deposit Amounted US$ 2000 MM, Interest Rate is Libor 12 months deposited on 24/9/2013 and due on 24/9/2018 Paid on annual basis. The Second Deposit Amounted US$ 2000 MM, Interest Rate is Fixed 2.50 % deposited on 21/4/2015 and due on 21/4/2018, 21/4/2019 and 21/4/2020 (Three installments) Interest Paid on Semi-annual basis.

74 Central Bank of Egypt - External Position 68 Table ( 31 ) Projected Medium Term Deposits for Libya as of January 1, 2018 Period Principal Interest Total (US$ million) 2018/H Grand Total (*) (*) Amounted US$ 2000 MM, no Interest Rate, deposited on 12/4/2013 and due from 11/7/2016 up to 11/4/2018 Quarterly (Each quarter amount: US$ 250 MM).

75 Central Bank of Egypt - External Position 69 Table ( 32 ) Projected Medium and Long-Term Deposits for Saudi Arabia as of January 1, 2018 Period Principal Interest Total 2018/H /H2 2, , /H /H2 3, , /H (US$ million) Grand Total 7, (*) , (*) Consists of Five Deposits : The First Deposit Amounted US$ 1000 MM (Outstanding now is US$ 500 MM), Interest Rate is Libor 3 months deposited on 9/5/2012 and due from 9/11/2015 up to 9/5/2020 (Equal 10 semiannual installments, USD 100 MM). The Second Deposit Amounted US$ 2000 MM, no Interest Rate deposited on 19/7/2013 and due on 19/7/2018. The Third Deposit Amounted US$ 2000 MM, Interest Rate is Fixed 2.50 % deposited on 22/4/2015 and due on 22/4/2018, 22/4/2019 and 22/4/2020 (Three installments) Interest Paid on Semi-annual basis. The Fourth Deposit Amounted US$ 2000 MM, Interest Rate is Fixed 4.50 % deposited on 23/9/2016 and due on 1/7/2019 Interest Paid on Quarterly-annual basis. The Fifth Deposit Amounted US$ 1000 MM, Interest Rate is Fixed 4.50 % deposited on 16/5/2017 and due on 1/7/2019 Interest Paid on Quarterly-annual basis.

76 Central Bank of Egypt - External Position 70 Table ( 33 ) Projected Medium and Long-Term Deposits for United Arab Emirates as of January 1, 2018 (US$ million) Period Principal Interest Total 2018/H /H /H1 1, , /H /H1 1, , /H /H1 1, , /H2 1, , /H /H /H /H2 1, , Grand Total 5, (*) , (*) Consists of Four Deposits : The First Deposit Amounted US$ 1000 MM, Interest Rate is Fixed 3.00 % deposited on 17/7/2013 and due on 15/7/2021, Interest Paid on Semi-annual basis The Second Deposit Amounted US$ 1000 MM, Interest Rate is Fixed 3.50 % deposited on 17/7/2013 and due on 17/7/2023, Interest Paid on Semi-annual basis The Third Deposit Amounted US$ 2000 MM, Interest Rate is Fixed 3.00 % for US$ million deposited on 22/4/2015 and due on 20/4/2021, and Interest Rate is Fixed 2.50 % for US$ MM deposited on 22/4/2015 and due on 22/4/2019 and 22/4/2020 (Two installments) Interest Paid on Semi-annual basis. The Fourth Deposit Amounted US$ 1000 MM, Interest Rate is Fixed 2.50 % deposited on 31/5/2016 and due on 30/5/2019, 30/5/2020 and 30/5/2021 (Three installments) Interest Paid on Semi-annual basis. The Fifth Deposit Amounted US$ 1000 MM (Outstanding is US$ MM), Interest Rate is Fixed 4.00 % deposited on 31/8/2016 and due on 31/8/2022 Interest Paid on monthly basis.

77 Central Bank of Egypt - External Position 71 Table ( 34 ) Projected Short-Term Debt Debt Service as of January 1, 2018 (US$ million) (1) Period Principal Interest Total January , , February March , , April May June July August September October November , , December , , Grand Total 11, , (1) The exchange rate of December 31, 2017.

78 Central Bank of Egypt - External Position 72 Table ( 35 ) Exchange Rates of the Currencies of External Debt Versus US Dollar as at End of December Country Currency United States USD Switzerland CHF Denmark DKK Egypt EGP Sweden SEK Japan JPY India INR United Kingdom GBP Canada CAD Australia AUD Norway NOK Euro EUR Special Drawing Rights SDR Kuwait KWD United Arab Emirates AED Saudi Arabia SAR Chinese Yuan CNY

79 Central Bank of Egypt External Position Appendix III Box Page I- Egypt's Subscription to SDDS and Data Quality Dimensions 1 75 II- Egypt's Data Quality Dimensions III- Doing Business in Egypt 3 77 IV- Tourism Sector Performance Glossary. 79

80 Central Bank of Egypt External Position 75 Box. (1): Egypt's Subscription to SDDS and Data Quality Dimensions: In 1996, the International Monetary Fund (IMF) introduced the Special Data Dissemination Standard (SDDS). The SDDS is intended to guide countries that have, or seek to have, access to international capital markets in their provision of economic and financial statistics. Subscription to SDDS is voluntary and it requires subscribers to observe the standard and provide information on data and dissemination practices (the metadata) to the IMF for redissemination. The standard identifies 4 dimensions of data dissemination: coverage, periodicity, and timeliness; access by the public; the integrity of the disseminated data; and the quality of the data themselves. In particular, the data dimension lists 18 data categories, providing coverage for 4 sectors (real, financial, fiscal and external) of the economy and prescribes minimum timeliness and frequency standards, summarized in the table below. On January 31, 2005, Egypt became the 59 th subscriber to the International Monetary Fund's Special Data Dissemination Standard (SDDS). The report of the External Position contains external sector data that cover external debt, balance of payments, international reserves, merchandise trade, international investment position (IIP) and exchange rates. Such data are published in compliance with the requirement under the Special Data Dissemination Standard (SDDS) of the IMF. The Central Bank of Egypt compiles these statistics and disseminates them through press releases, its website, and at the same time, on the IMF's Dissemination Standards Bulletin Board (DSBB). Also, these data are included in the CBE's main publications; quarterly Economic Review, Annual Report and Monthly Statistical Bulletin. As the title indicates, the most comprehensive and complete databases are those available from national sources, supplying high quality, timely and accurate data to international financial community to support investment activity. SDDS Data Categories and Related Periodicity & Timeliness Standards SDDS Data Category Periodicity Minimum Timeliness Real Sector National accounts Quarterly 1 Quarter Production indices Monthly 6 weeks Employment, unemployment, wage/earnings Quarterly 1 Quarter Consumer price index Monthly 1 Month Fiscal Sector General Government operations Annual 2 quarters Central Government operations Monthly 1 Month Central Government debt Quarterly 1 Quarter Financial Sector Analytical accounts of the banking sector Monthly 1 Month Analytical accounts of the Central Bank Monthly 2 weeks Interest rates and stock market Daily * No timeliness standard set External Sector Balance of payments Quarterly 1 Quarter International reserves Monthly 1 week Merchandise trade Monthly 8 weeks International Investment Position (IIP) Quarterly 1 quarter External debt Quarterly 1 Quarter Exchange rates Daily *No timeliness standard set Source: IMF's Statistics Department.

81 Central Bank of Egypt External Position 76 Box. (2):Egypt's Data Quality Dimensions*: According to international rating agencies, having efficient, effective and reliable economic data, especially in developing countries, is becoming increasingly crucial to assign an appropriate sovereign credit rating. Thus, a lack of data in this area will automatically translate into a perception of high risk. Therefore, highlighting the dimensions of Egypt's data quality by showing the results of World Bank index (BBSC 2017) will be an appropriate way to show how reliable the Egyptian official data are. Egypt ranked 25 th on World Bank's Bulletin Board on Statistical Capacity index on 146 developing countries and 1 st on the MENA and African regions, with an overall statistical capacity index of 83.3 points, compared to 87.8 in Statistical Capacity Indicator 2017 (on a scale of 0-100) Indicator Egypt All Countries Overall Methodology Source Data Periodicity & timeliness A country's statistical capacity means its ability to extract and publish reliable and timely statistical data, easily accessible by the public. The statistical capacity index, issued annually by the World Bank, consists of three sub-indicators which include; methodology, data sources, and its periodicity and timeliness. The latter measures the degree of information and data dissemination concerning changes in government policy, and how easily that information can be accessed by the public. It is worth mentioning that, aiming to improve the statistical capacity of 146 developing countries, the World Bank provides information on various aspects of national statistical systems through the BBSC indicator at its website. As can be seen from the table and its chart, Egypt s score outpaced the average score of all countries, either on the level of the overall index, or on the level of its three sub-indicators. * Source: bbsc.worldbank.org, accessed in November, 2017.