External Position of the Egyptian Economy

Central Bank of Egypt External Position of the Egyptian Economy During the Period July / September 2004/05 Quarterly Report Volume No. (7) January 2005

Foreword The External Position of the Egyptian Economy Report is one of a series released by the Central Bank of Egypt (CBE) on a quarterly basis to shed light on the performance of Egypt's external sector during the period of coverage. The report at hand, the Seventh in this series, covers the first quarter of FY 2004/05. It reviews the BOP performance, external debt, international reserves and exchange rate developments during the said period. The Central Bank of Egypt hopes that this report will be of value and of interest to both specialized and non-specialized readers. Governor Central Bank of Egypt

Table of Contents Page Overview Section I: Balance of Payments 1 Section II: External Liquidity 9 Net International Reserves 9 Net Foreign Assets with Banks 10 Section III : External Debt 11 Section IV : Exchange Rate Developments 15 Appendices : A - Main Statistics 17 B - Detailed Tables & Charts of the External Debt 25

Overview The main developments in the external position of the Egyptian economy during the first quarter of FY 2004/05 compared with that of FY 2003/04 are summarized hereunder. Egypt's balance of payments achieved a significant current account surplus totaling US$ 1927.8 million during July/Sept. 2004/05 compared with US$ 1538.9 million in the same period of FY 2003/04. This is mainly attributed to a higher surplus on services balance by 31.9%, as travel revenues surged by 29.3%, and to a rise in unrequited transfers by 29.1%. Meanwhile, the trade deficit increased by 36.8%. The capital and financial account resulted in a net outflow of US$ 2224.6 million against US$ 2231.6 million. Foreign investments in Egypt (direct and portfolio) realized total inflows of US$ 498.0 million during July/Sept. 2004/05 against US$ 278.5 million in the same period of FY 2003/04, and total outflows of US$ 409.4 million against US$ 241.2 million. Net inflows of these investments amounted to US$ 88.6 million compared with US$ 37.3 million. The overall balance deficit lowered to US$ 103.1 million during July/Sept. 2004/05 from US$ 144.3 million in the corresponding period of FY 2003/04. Net international reserves reached US$ 14.7* billion, with a decrease of US$ 106.0 million during the period, covering about eight months of commodity imports. Banks' net foreign assets reached US$ 6.9 billion at end of Sept. 2004, increasing by US$ 1.2 billion. Foreign currency deposits with banks also increased by 3.5% to reach US$ 20.6 billion at end of Sept. 2004. Egypt's external debt (public and private) totaled US$ 29.5 billion at end of September 2004, up by about US$ 0.5 billion from US$ 28.9 billion at end of June 2004. The external debt position continued to be solid and well structured, as the medium and long-term debt accounted for 93.1 % of total debt, under which the public sector is the major obligor, carrying 94.6% of Egypt's external debt. Despite a net repayment of US$ 0.4 billion, the medium and long-term debt increased by US$ 0.5 billion, due to the depreciation of the US dollar vis-à-vis other currency obligations. Such a net repayment was an outcome of principal repayments of US$ 0.5 billion and disbursements of US$ 0.1 billion. External debt as a ratio of GDP increased to reach 36.9% at end of September 2004, against 37.7% at end of September 2003. The Egyptian pound exchange rate reached PT 623.1091*/US dollar at the end of September 2004 against PT 614.1882 a year earlier. * During the printing process of this report, Net International Reserves (NIR) reached US$ 15.4 billion at end of December 2004, and the LE exchange rate appreciated to reach PT 584.780/US dollar on January 18, 2005.

Section I Balance of Payments

- 1 - Developments in the Balance of Payments* During July/Sept. of FY 2004/05 Introduction Table (1) reveals the balance of payments' transactions during the period July/Sept. 2004/05, compared with that of 2003/04. While services balance surplus as well as unrequited transfers improved noticeably, trade deficit widened. The BOP current account including transfers, achieved a surplus of US$ 1.9 billion during July/Sept. 2004/05. The capital and financial account realized net outflows. The overall balance recorded a deficit of US$ 103.1 million compared with US$ 144.3 million during the corresponding period of the previous year. Table (1) Balance of Payments* (US$ mn) July /Sept. 2003/04 2004/05** Current Account 1538.9 1927.8 Current Account (Excluding Transfers) 683.5 823.5 Trade Balance -1603.3-2193.7 Exports FOB*** 2227.3 3114.9 Oil 827.0 1216.2 Other Exports 1400.3 1898.7 Imports CIF*** -3830.6-5308.6 Oil -490.3-539.1 Other Imports -3340.3-4769.5 Services Balance 2286.8 3017.2 Receipts 3540.7 4419.4 Payments -1253.9-1402.2 Transfers 855.4 1104.3 Official (net) 132.9 265.0 Private (net) 722.5 839.3 Capital and Financial Account -2231.6-2224.6 Direct investment abroad -6.4-5.0 Direct investment in Egypt (net) 33.7 50.0 Portfolio investment abroad 4.3 72.9 Portfolio investment in Egypt (net), of which: 3.6 38.6 Sovereign bonds -17.2 9.1 Other investments (net) -2266.8-2381.1 Net Errors and Omissions 548.4 193.7 Overall Balance -144.3-103.1 Change in Reserve Assets, Increase (-) 144.3 103.1 * Compiled according to the Fifth Edition of the IMF's Balance of Payments Manual, September 1993. ** Preliminary figures. *** Including exports and imports of free zones.

- 2-1 - Current Transactions 1.1: Trade Balance As shown in Fig (1) the trade balance has demonstrated a rise in both exports and imports. Import payments totaled US$ 5.3 billion, indicating a rise of US$ 1.5 billion, or 38.6%. This was an outcome of a 42.8% increase in non- oil imports to post US$ 4.8 billion, and a 10.0% increase in oil imports, to reach US$ 0.5 billion. Commodity export proceeds totaled US$ 3.1 billion during July/Sept. 2004/05, with an increase of US$ 0.9 billion, or 39.9% over the previous period. This pick up was due to a 35.6% rise in non-oil export proceeds, to reach US$ 1.9 billion, and a 47.1% rise in oil export proceeds to reach US$ 1.2 billion. However, despite the rise of 36.8% in the trade deficit to post US$ 2.2 billion against US$ 1.6 billion, the period recorded a pick up in the coverage ratio of export proceeds to import payments from 58.1% to 58.7%. Figure (1) ( US$ bn ) 6 Commodity Transactions July/ Sept. 5 4 3 2 Non Oil 1 Oil 0 2003 / 2004 2004 / 2005 2003 / 2004 2004 / 2005 Exports Imports 1.2: Services Balance and Transfers Table (2) reveals that the services surplus increased by 31.9%, to reach US$ 3.0 billion during July/Sept. 2004/05, against US$ 2.3 billion. Such an increase was a result of a pick up in service receipts by 24.8%, to reach US$ 4.4 billion, and in services payments by only 11.8%, to reach US$ 1.4 billion.

Table (2) - 3 - Services Balance (US$ mn) July /Sept. 2003/04 2004/05 Change (-) Services Balance 2286.8 3017.2 730.4 Receipts 3540.7 4419.4 878.7 Transportation 867.4 999.2 131.8 Travel 1632.7 2111.0 478.3 Investment Income 138.2 153.5 15.3 Government Receipts 73.8 40.7 (33.1) Other Receipts 828.6 1115.0 286.4 Payments 1253.9 1402.2 148.3 Transportation 138.3 183.6 45.3 Travel 272.1 277.4 5.3 Investment Income 221.6 228.0 6.4 Government Payments 120.6 140.3 19.7 Other Payments 501.3 572.9 71.6 As shown in Table (2) and Figure (2), the rise in services receipts was reflected in most items. Travel receipts (tourism revenues) increased by 29.3% to total US$ 2.1 billion *, mainly as tourist nights jumped to record 28.1 million nights during July/Sept. 2004/05 against 21.8 million nights during July/Sept. 2003/04, while the average expenditure of a tourist per night remained at the same level of US$ 75.0/night. Other receipts rose by 34.6% to amount to US$ 1.1 billion, mainly due to an increase in invisible receipts in the petroleum sector, in the construction and contractors' services, and in communication services. Transportation rose as well by 15.2 % to reach US$ 1.0 billion, as a result of the pick up in Suez Canal dues by 12.5%, and in the receipts of Egyptian airlines companies. Investment income receipts also rose by 11.1% due to the increase in all its components. On the other hand, government receipts fell by 44.9% to total US$ 40.7 million. The 11.8% rise on the service payments side was reflected in all items. Transportation payments surged by 32.8% due to higher transfers by foreign airlines companies and by Egyptian navigation companies. Government payments rose by 16.3% to reach US$ 140.3 million. Other payments went up by 14.3% to reach US$ 572.9 million, mainly due to higher transfers by Egyptian petroleum companies, Egyptian companies, construction and contractors' services, and communication services. Investment income payments increased by 2.9% to reach US$ 228.0 million. Travel payments increased by only 1.9% due to higher transfers by hotels and tourism companies. Calculated on the basis of the number of tourist nights multiplied by a tourist average spending per night.

- 4 - Figure (2) (US$ bn ) 6 Services Balance July/Sept. 4 Receipts Payments 2 Travel Receipts 0 2003 / 2004 2004 / 2005 Table (3) below shows that net unrequited transfers rose by 29.1%, recording US$ 1.1 billion in July/Sept. 2004/05. Official transfers increased by 99.4%, due to the rise in cash and other grants, while private transfers rose by 16.2%, mainly due to the increase in workers' remittances. Table (3) Unrequited Transfers (US$ mn) July /Sept. 2003/04 2004/05 Change (-) Total 855.4 1104.3 248.9 1. Official Transfers (net) 132.9 265.0 132.1 Inward cash grants 5.2 36.0 30.8 Other inward grants 138.0 237.1 99.1 Outward grants -10.3-8.1 2.2 2. Private Transfers (net) 722.5 839.3 116.8 Workers' remittances 723.3 802.8 79.5 Other transfers 7.3 42.5 35.2 Foreigners transfers abroad -8.1-6.0 2.1

- 5 - The BOP current account indicates an increase of US$ 2.0 billion or 30.4% in current receipts. This rise is a reflection of an increase in all its components, specifically 39.9% in export proceeds, 24.8% in services receipts, 99.4% in official transfers and 16.2% in private transfers. On the other hand, current payments increased by 32.0% due to a rise of 38.6% in import payments and of 11.8% in services payments. (See Table [4] below) Table (4) Summary of Current Receipts and Payments July /Sept. 2003/04 % 2004/05 % (US$ mn) Change (-) Current Receipts 6623.4 100.0 8638.6 100.0 2015.2 Export Proceeds (FOB) 2227.3 33.6 3114.9 36.0 887.6 Service Receipts 3540.7 53.5 4419.4 51.2 878.7 Private Transfers (net) 722.5 10.9 839.3 9.7 116.8 Official Transfers (net) 132.9 2.0 265.0 3.1 132.1 Current Payments 5084.5 100.0 6710.8 100.0 1626.3 Import Payments (CIF) 3830.6 75.3 5308.6 79.1 1478.0 Service Payments 1253.9 24.7 1402.2 20.9 148.3 External balancing indicators have improved in some cases and declined in others, as shown in Table (5). By excluding official transfers, current receipts cover 124.8% of current payments in July/Sept. of fiscal year 2004/05, against 127.7% a year earlier. On adding official transfers, the ratio rises to 128.7% against 130.3%. Table (5) Current Receipts/Current Payments Coverage Ratio (%) July /Sept. 2003/04 2004/05 Commodity Exports/Commodity Imports 58.1 58.7 Invisible Receipts/Invisible Payments 282.4 315.2 Current Receipts/Current Payments (excluding official transfers) 127.7 124.8 Current Receipts/Current Payments 130.3 128.7

- 6-2 - Capital and Financial Account Fig. (3) and Table (6) hereunder reveal that during the period July/Sept. 2004/05, the capital and financial account achieved a net outflow of US$ 2.2 billion, almost at the same level of the corresponding period of FY 2003/04. Figure (3) (US$ bn) 2 Capital & Financial Account July/Sept 1.5 1 Capital Inflow 0.5 0 Table (6) 2003/2004 2004/2005 Capital and Financial Account Capital Outflow (US$ mn) July /Sept. 2003/04 2004/05 Capital and Financial Account -2231.6-2224.6 Financial Account -2231.6-2224.6 Direct Investment Abroad -6.4-5.0 Foreign Direct Investment in Egypt (net) 33.7 50.0 Portfolio Investment Abroad 4.3 72.9 Portfolio Investment in Egypt (net), of which 3.6 38.6 Sovereign bonds -17.2 9.1 Other Investments (net) -2266.8-2381.1 Disbursements 574.1 509.1 Medium- and long- term loans 178.8 108.0 International & regional organizations 152.8 96.2 Bilateral loans 26.0 11.8 Medium- and long-term suppliers & buyers credit 42.0 2.0 Short-term suppliers & buyers credit (net) 353.3 399.1 Repayments -477.4-521.8 Medium- and long-term loans -414.3-444.8 International & regional organizations -115.5-112.9 Bilateral loans -298.8-331.9 Medium- and long-term suppliers & buyers credit -63.1-77.0 Other Assets -1857.6-2093.2 CBE -21.8-0.8 Banks -688.0-899.6 Others -1147.8-1192.8 Other Liabilities -505.9-275.2 CBE -0.6 0.9 Banks -505.3-276.1 Preliminary. FDI

- 7 - The following are the factors that influenced the capital and financial account during July/Sept. 2004/05 as compared with the same period of FY 2003/04: - Foreign investments in Egypt (direct and portfolio) realized total inflows of US$ 498.0 million and total outflows of US$ 409.4 million, compared with US$ 278.5 million, and US$ 241.2 million, respectively in the corresponding period. Such transactions led to net inflows totalling US$ 88.6 million during July/Sept. 2004/05 against US$ 37.3 million. Foreign direct investments in Egypt realized a net inflow of US$ 50.0 million against US$ 33.7 million in July/Sept. 2003/04. Portfolio investment in Egypt realized net inflows totalling US$ 38.6 million compared with US$ 3.6 million in the corresponding period. It is noteworthy that foreigners' tradings on the Egyptian Stock Market revealed net purchases of US$ 29.5 million during July/Sept. 2004/05 against US$ 20.8 million. Total purchases amounted to US$ 438.9 million against US$ 228.4 million, while total sales were US$ 409.4 million, against US$ 207.6 million. Portfolio investment in Egypt also included sales of US$ 9.1 million by resident financial institutions (banks and insurance companies) of sovereign bonds issued abroad, against purchases of US$ 17.2 million. - Medium and long term loans and credits revealed a net repayment of US$ 411.8 million during July/Sept. 2004/05 against US$ 256.6 million, as total disbursements* fell to US$ 110.0 million and total repayments rose to US$ 521.8 million. The fall in total disbursements was a result of a sharp drop in medium- & long-term suppliers' credits to record US$ 2.0 million, while the rise in total repayments was ascribed to higher bilateral loans repayments. - Foreign assets of the banking system improved by US$ 900.4 million compared with US$ 709.8 million. Foreign assets of banks increased by US$ 899.6 million against US$ 688.0 million; and non-reserve foreign assets of the CBE rose by US$ 0.8 million compared with US$ 21.8 million in the corresponding period of the previous year. - Other assets increased by 12.7% to amount to US$ 1.2 billion. This increase was mainly due to the difference between travel (tourism) revenues calculated on the basis of the number of tourist nights multiplied by the average expenditure of a tourist per night, and those revenues calculated according to banks statistics. * For medium - and long - term loans and credits.

- 8 - - Other liabilities fell by US$ 275.2 million against US$ 505.9 million, because of the decrease in banks foreign liabilities by US$ 276.1 million in July/Sept. 2004/05, compared with US$ 505.3 million; and the rise in CBE s foreign liabilities by US$ 0.9 million compared with a decrease of US$ 0.6 million. 3 - Overall Balance The overall deficit dropped to US$ 103.1 million in July/Sept. 2004/05 (-0.1% of GDP) from US$ 144.3 million in the corresponding period (-0.2% of GDP). Table (7) Balance of Payments: Summary (US$ mn) July /Sept. 2003/04 2004/05* Current Account Balance 1538.9 1927.8 Capital & Financial Account -2231.6-2224.6 Foreign Direct Investment (inflow-outflow) 27.3 45.0 Portfolio Investment (inflow-outflow) 7.9 111.5 Net Borrowing 96.7-12.7 CBE Non-reserve Foreign Assets** -21.8-0.8 CBE Short-term Liabilities -0.6 0.9 Net Foreign Assets of Banks** -1193.3-1175.7 Other Assets -1147.8-1192.8 Net Errors & Omissions 548.4 193.7 Overall Balance -144.3-103.1 Change in CBE's Reserve Assets** 144.3 103.1 * Preliminary. ** Increase = Minus.

Section II External Liquidity Net International Reserves Net Foreign Assets with Banks

- 9-1 - Net International Reserves (NIR) During the period July/Sept. of FY 2004/05, NIR retreated by US$ 106.0 million, against US$ 127 million, to reach US$ 14.7 billion at end of September 2004. However, the NIR coverage ratio for commodity imports reached 8.3 months at end of Sept. 2004. Table (8) (US$ mn) End of June 2003 Sept. 2003 June 2004 Sept. 2004 Net International Reserves (1-2) 14809 14682 14781 14675 1- Gross Official Reserves 14845 14722 14800 14696 Gold 631 631 717 717 Foreign Exchange 13837 13713 13734 13631 SDRs 51 58 73 78 Other 326 320 276 270 2- Reserve Liabilities 36 40 19 21 Reserves/Months Imports 11.9 11.5 9.9 8.3 Figure (4) US$ bn 15.0 13.5 12.0 10.5 9.0 7.5 6.0 4.5 3.0 1.5 NIR and months imports covered ( Balance at end of month) (Month) 16.5 15.0 13.5 12.0 10.5 9.0 Foreign Exchange Gold Other Reserves/Months Imports 0.0 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 7.5

- 10-2- Net Foreign Assets of Banks (NFA) Banks net foreign assets increased by US$ 1.2 billion during July/Sept. of FY 2004/05, to reach US$ 6.9 billion at end of Sept. 2004. (See Figure [5]) Figure (5) Net Foreign Assets of Banks US $ bn 12.0 ( Balance at end of month) 10.0 8.0 6.0 4.0 2.0 0.0 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Assets Liabilities During July/Sept. of FY 2004/05, foreign currency deposits with banks increased by 3.5% against 4.9% in the corresponding period, to reach US$ 20.6 billion at end of Sept. 2004. On the other hand, local currency deposits increased by 3.6% against 2.9%. Accordingly, the ratio of foreign currency deposits to total deposits posted 32.7% at end of Sept. 2004, against 32.6% at end of June 2004. LE bn Developments in Deposits by Local and Foreign Currencies ( Balance at end of month) 400 350 300 Foreign Currency Deposits 250 200 150 100 Local Currency Deposits 50 0 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04

Section III External Debt

- 11-1 - Egypt s External Debt Egypt s external debt (public and private) in US dollar reached US$ 29.5 billion at end of September 2004, denoting a rise of US$ 0.5 billion or 1.9 %. The rise was mainly an outcome of the appreciation of most currencies of borrowing against the US dollar, and the pick-up in short-term debt. The rise in the external debt was, however, mitigated partly by the increase in the stock of sovereign bonds, in the amount of US$ 9.1 million, and partly by the net repayment of US$ 0.4 billion. Table (9) End of External Debt (US$ mn) June 2004 September 2004 Change Value % Value % + (-) External Debt 28937.8 100.0 29473.9 100.0 536.1 Rescheduled bilateral debt* 15958.3 55.2 16166.8 54.8 208.5 ODA ** 7626.1 26.4 7958.7 27.0 332.6 Non-ODA 8332.2 28.8 8208.1 27.8 (124.1) Other bilateral debt 4400.5 15.2 4404.6 15.0 4.1 Paris Club countries 3364.9 11.6 3271.4 11.1 (93.5) Other countries 1035.6 3.6 1133.2 3.9 97.6 International & regional organizations 4781.1 16.5 5018.8 17.0 237.7 Suppliers' & buyers' credit 1084.8 3.8 1175.9 4.0 91.1 Sovereign bonds 587.7 2.0 596.8 2.0 9.1 Short-term debt: 1967.5 6.8 2025.1 6.9 57.6 Deposits 1267.5 4.4 1254.9 4.3 (12.6) Other facilities 700.0 2.4 770.2 2.6 70.2 Private sector (non-guaranteed) 157.9 0.5 85.9 0.3 (72.0) * According to the agreement signed with Paris Club countries on 25/5/1991 ** Official Development Assistance

- 12 - Figure (7) US$ mn 35000 30000 25000 20000 15000 10000 5000 0 External Debt By Maturity & Debtor Sector September 2002 2003 2004 Medium & Long-term External Debt Public Sector Debt Short-term External Debt Private Sector Debt Data on external debt reveal an ongoing improvement in the external debt structure, as medium- and long-term debt accounted for 93.1% of total debt, and short-term debt accounted for 6.9%. The public sector owed 94.6% of Egypt s external debt, and the private sector owed 5.4%. (see Figure [7] above) In spite of the net repayments realized during July/September 2004/05, which reached US$ 0.4 billion, the medium- and long-term debt, increased by US$ 0.5 billion, to reach US$ 27.4 billion at end of September 2004, compared with end of June 2004. Such an increase was a result of the depreciation of the US dollar vis-àvis other currencies of borrowing. It is worth noting that the net repayment was an outcome of principal repayments of US$ 0.5 billion and disbursements of only US$ 0.1 billion. 2 - External Debt by Creditor A breakdown of Egypt s external debt by creditor indicates that bilateral loans owed to Paris Club members (rescheduled and non-rescheduled) accounted for 65.9% of the total, reaching US$ 19.4 billion at end of September 2004. Debt owed to non Paris Club members amounted to US$ 1.1 billion, or 3.9%. The outstanding debt of suppliers and buyers credit amounted to US$ 1.2 billion, or 4.0% of the total. 58.5% of the total debt, was owed to France, USA, Japan and Germany. Egypt s bilateral debt to international and regional organizations reached US$ 5.0 billion at end of September 2004, accounting for 17.0% of the total. The stock of sovereign bonds increased by US$ 9.1 million to reach US$ 596.8 million at end of September 2004, against US$ 587.7 million at end of June 2004. Shortterm debt increased by US$ 57.6 million to reach US$ 2.0 billion or 6.9% of the total. The non-guaranteed debt of the private sector decreased by US$ 72.0 million to reach US$ 85.9 million or 0.3% of the total.

- 13-3 - External Debt by Debtor Table (10) reveals that the external debt data display an increase of US$ 536.1 million in main institutional sectors during July/September 2004/05. Specifically, the balance of the external debt of central and local government increased by US$ 224.7 million, of banks by US$ 179.7 million, of other sectors by US$ 100.5 million, and of the Central Bank by US$ 31.2 million. In spite of the said effects, the structure of Egypt s external debt by debtor has not seen any significant change during the period under review. The central and local government, as shown in the table, has continued to be the main debtor, with US$ 18.7 billion or 63.5% of the total, representing claims on the government. Table (10) End of External Debt by Debtor June September 2004 % 2004 % (US$ mn) Change + (-) External Debt 28937.8 100.0 29473.9 100.0 536.1 Total Medium- & Long-Term Debt 26970.3 93.2 27448.8 93.1 478.5 Total Short-Term Debt 1967.5 6.8 2025.1 6.9 57.6 Central & Local Government 18490.4 63.9 18715.1 63.5 224.7 Medium- & Long-term Debt, of which 18490.4 63.9 18715.1 63.5 224.7 Bonds & Notes 587.7 2.0 596.8 2.0 9.1 Short-term Debt 0.0 0.0 0.0 0.0 0.0 Monetary Authority 969.8 3.3 1001.0 3.4 31.2 Medium- & Long-term Debt 319.8 1.1 351.0 1.2 31.2 Short-term Debt 650.0 2.2 650.0 2.2 0.0 Banks 2469.4 8.6 2649.1 9.0 179.7 Medium- & Long-term Debt 1151.9 4.0 1274.0 4.3 122.1 Short-term Debt 1317.5 4.6 1375.1 4.7 57.6 Other Sectors 7008.2 24.2 7108.7 24.1 100.5 Medium- & Long-term Debt 7008.2 24.2 7108.7 24.1 100.5 Short-term Debt 0.0 0.0 0.0 0.0 0.0 4 - External Debt Indicators External debt service payments increased by US$ 35.7 million during July/ September 2004/05 to reach US$ 721.9 million. This was a result of the US$ 44.4 million increase in principal repayments, to reach US$ 521.8 million, and the US$ 8.7 million decrease in interest payments, to stand at US$ 200.1 million.

- 14 - Despite this increase, the debt service ratio to export proceeds of goods and services declined to 9.6% during July/ September 2004/05, from 11.9% in the previous corresponding period, due mainly to an increase in commodity exports, travel receipts and Suez Canal dues. In the same manner, debt service ratio to current receipts stepped down to 8.4%, compared with 10.4%. (See Figure [8] and Table [11]) In the meantime, the ratio of short-term external debt to total debt rose from 6.6% to 6.9%. Similarly, its ratio to NIR increased from 13.1% to 13.8%. As a percentage of GDP, the external debt decreased to reach 36.9% at end of September 2004, against 37.7% at end of September 2003. Figure (8) 25 23 20 18 15 13 10 8 5 3 0 External Debt Indicators September % % 2002/2003 2003/2004 2004/2005 Short-term Debt / External Debt (end of period) Short-term Debt / Net International Reserves (end of period) Debt Services / Exports (G & S) Debt Services / Current Receipts External Debt/GDP(right axis) 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Table (11) External Debt Indicators (%) July /September 2002/03 2003/04 2004/05 Debt Service/Exports (G&S) 13.8 11.9 9.6 Debt Service/Current Receipts 11.6 10.4 8.4 Short-term Debt/External Debt (end of period) 7.8 6.6 6.9 Short-term Debt/NIR (end of period) 15.7 13.1 13.8 External Debt/GDP 30.4 37.7 36.9

Section IV Exchange Rate Developments

- 15 - Exchange Rate Developments Since 29 January 2003, the exchange rate of the Egyptian pound has been liberalized. According to CBE Central Chamber for FX Statistics, the US dollar exchange rate reached pt 623.1091 at end of September 2004, against pt 614.1882 at end of September 2003. This exchange rate is calculated on the basis of the weighted average of US dollar exchange rate at all market participants including the CBE. As such, the LE exchange rate depreciated by about 1.43 % during the year under review. Table (12) Exchange Rate (in PT/US$) End of September Weighted Average Rate 2002 453.2330 2003 614.1882 2004 623.1091 LE depreciation (%) 1.43 % Figure (9) Weighted Average Rate (in PT/US$)- End of Month 650.0 625.0 600.0 575.0 550.0 525.0 500.0 475.0 450.0 425.0 400.0 September 02 September 03 September 04

Appendices

A. Main Statistics Page I- Balance of Payments Balance of Payments (July/Sept. 2003/04 2004/05) 19 Balance of Payments (contd.) 20 II- External Liquidity Net International Reserves & Net Foreign Assets of Banks... 21 III- External Debt External Debt 22 Total External Debt by Debtor 23 IV- Exchange Rate Developments Exchange Rate ( in piasters per foreign currency unit ) 24

- 19 - Table (1) Balance of Payments (US$ mn) July/September 2003/04 2004/05* Trade Balance -1603.3-2193.7 Exports**(FOB) 2227.3 3114.9 Petroleum 827.0 1216.2 Other Exports 1400.3 1898.7 Imports**(CIF) -3830.6-5308.6 Petroleum -490.3-539.1 Other Imports -3340.3-4769.5 Services (Net) 2286.8 3017.2 Receipts 3540.7 4419.4 Transportation, of which : 867.4 999.2 Suez Canal (682.0) (767.4) Travel 1632.7 2111.0 Investment Income 138.2 153.5 Government Services 73.8 40.7 Other 828.6 1115.0 Payments 1253.9 1402.2 Transportation 138.3 183.6 Travel 272.1 277.4 Investment Income, of which 221.6 228.0 Interest Paid (186.9) (187.0) Government Expenditures 120.6 140.3 Other 501.3 572.9 Balance of Goods & Services 683.5 823.5 Transfers 855.4 1104.3 Private Transfers (Net) 722.5 839.3 Official Transfers (Net) 132.9 265.0 Current Account Balance 1538.9 1927.8 * Preliminary. **Include free zones exports and imports.

- 20 - Table (1) Balance of Payments (contd.) (US$ mn) July/September 2003/04 2004/05* Capital & Financial Account -2231.6-2224.6 Financial Account -2231.6-2224.6 Direct Investment Abroad -6.4-5.0 Direct Investment in Egypt (Net) 33.7 50.0 Portfolio Investment Abroad 4.3 72.9 Portfolio Investment in Egypt (Net), of which: 3.6 38.6 Bonds -17.2 9.1 Other Investment (Net) -2266.8-2381.1 Net Borrowing 96.7-12.7 M&L Term Loans (Net) -235.5-336.8 Drawings 178.8 108.0 Repayments -414.3-444.8 MT Suppliers' Credit (Net) -21.1-75.0 Drawings 42.0 2.0 Repayments -63.1-77.0 ST Suppliers' Credit (Net) 353.3 399.1 Other Assets -1857.6-2093.2 Central Bank -21.8-0.8 Banks -688.0-899.6 Other -1147.8-1192.8 Other Liabilities -505.9-275.2 Central Bank -0.6 0.9 Banks -505.3-276.1 Net Errors & Omissions 548.4 193.7 Overall Balance -144.3-103.1 Change in CBE Reserve Assets,Increase(-) 144.3 103.1 *Preliminary.

Table (2) : Net International Reserves & Net Foreign Assets of the Banking System (US$ million) End of June99 June00 June01 June02 June03 Sep.03 June04 Sep.04 Net International Reserves(1-2) 18065.7 15130.4 14244.0 14146.6 14808.6 14681.7 14780.6 14675.4 1- Gross Official Reserves 18099.3 15160.6 14269.2 14179.1 14844.7 14721.9 14800.1 14695.8 Gold 476.1 511.1 488.2 570.7 631.2 631.2 716.9 716.9 Foreign exchange 17165.4 14220.9 13374.7 13228.1 13836.6 13713.1 13734.8 13631.0 SDRs 39.9 35.7 37.7 34.4 51.4 57.9 72.7 78.4-21 - Other 417.9 392.9 368.6 345.9 325.5 319.7 275.7 269.5 2- Reserve Liabilities 33.6 30.2 25.2 32.5 36.1 40.2 19.5 20.4 Banks' Net Foreign Assets 1817.2 2681.1 1394.3 1614.3 2169.5 3362.6 5705.3 6881.0 Assets 7164.2 7347.4 6328.9 6102.8 6594.8 7282.9 9188.1 10087.7 Liabilities 5347.0 4666.3 4934.6 4488.5 4425.3 3920.3 3482.8 3206.7

Table (3) External Debt (US$ mn) End of June June June June June June September June September 1998 1999 2000 2001 2002 2003 2003 2004 2004 Total External Debt* 28076.5 28224.1 27783.3 26560.0 28660.8 28747.5 29209.9 28937.8 29473.9 Rescheduled bilateral debt ** 17031.6 16799.9 16291.8 14779.4 15336.4 15804.1 15917.9 15958.3 16166.8 ODA 7868.6 7938.9 7968.7 7345.1 7455.6 7512.6 7622.2 7626.1 7958.7 Non-ODA 9163.0 8861.0 8323.1 7434.3 7880.8 8291.5 8295.7 8332.2 8208.1 Other bilateral debt 4068.1 4227.4 4226.4 3894.4 4057.2 4270.1 4391.7 4400.5 4404.6 Paris Club countries 3620.0 3693.1 3677.0 3353.0 3405.0 3291.5 3367.0 3364.9 3271.4 Other countries 448.1 534.3 549.4 541.4 652.2 978.6 1024.7 1035.6 1133.2 International & regional institutions 4302.2 4325.7 4275.2 4310.4 4697.4 4862.8 4967.7 4781.1 5018.8 Suppliers' & buyers' credit 825.1 657.4 980.6 896.0 923.8 988.2 1025.1 1084.8 1175.9 Sovereign bonds 0.0 0.0 0.0 0.0 953.6 735.4 718.2 587.7 596.8 Short-term debt 1718.8 1829.6 1627.9 2207.0 2150.0 1864.5 1926.7 1967.5 2025.1 Private sector debt (non-guaranteed) 130.7 384.1 381.4 472.8 542.4 222.4 262.6 157.9 85.9-22 - Source: Central Bank of Egypt. * The difference from World Bank Data is in short-term debt. ** According to the agreement signed with Paris Club countries on May 25, 1991.

- 23 - Table (4) External Debt by Debtor (US$ mn) End of Jun-04 % Sep-04 % Change (-) External Debt 28937.8 98.2 29473.9 100.0 536.1 Total Medium & Long-Term 26970.3 91.5 27448.8 93.1 478.5 Total Short-Term 1967.5 6.7 2025.1 6.9 57.6 Central & Local Government 6813.4 23.1 18715.1 63.5 11901.7 Medium & Long-Term (of which) 6813.4 23.1 18715.1 63.5 11901.7 Bonds & Notes 587.7 2.0 596.8 2.0 9.1 Loans 6225.7 21.1 18118.3 61.5 11892.6 Currency and Deposits Other Liabilities Short-Term 0.0 0.0 0.0 0.0 0.0 Monetary Authority 12646.8 42.9 1001.0 3.4 (11645.8) Medium & Long-Term 11996.8 40.7 351.0 1.2 (11645.8) Bonds & Notes Loans 11996.8 40.7 351.0 1.2 (11645.8) Currency and Deposits Other Liabilities Short-Term 650.0 2.2 650.0 2.2 0.0 Money Market Instruments Loans Currency and Deposits 650.0 2.2 650.0 2.2 0.0 Other Liabilities Banks 2469.4 8.4 2649.1 9.0 179.7 Medium & Long-Term Loans 1151.9 3.9 1274.0 4.3 122.1 Bonds & Notes Loans 1151.9 3.9 1274.0 4.3 122.1 Currency and Deposits Other Liabilities Short-Term Loans 1317.5 4.5 1375.1 4.7 57.6 Money Market Instruments Loans 87.7 0.3 98.9 0.3 11.2 Currency and Deposits 617.5 2.1 604.9 2.1 (12.6) Other Liabilities 612.3 2.1 671.3 2.3 59.0 Other Sectors 7008.2 23.8 7108.7 24.1 100.5 Medium & Long-Term 7008.2 23.8 7108.7 24.1 100.5 Bonds & Notes Loans 7008.2 23.8 7108.7 24.1 100.5 Currency and Deposits Other Liabilities Short-Term 0.0 0.0 0.0 0.0 0.0

Table (5) Exchange Rates (In piasters per foreign currency unit ) End of June 2002 June 2003 June 2004 September 2003 September 2004 Buy Sell Buy Sell Buy Sell Buy Sell Buy Sell General average market rate announced by FOREX Statistics 462.0706 464.2872 603.2290 607.4244 620.2308 622.5180 614.9360 616.0038 623.1673 625.1293 Chamber (per US dollar) CBE Rates* (Transfers) : US Dollar 450.0000 452.0000 603.2877 606.2877 618.9948 620.9948 612.5705 615.5705 622.8973 623.8973 Euro 443.5200 445.4912 689.1355 692.5624 750.4693 752.8941 709.2341 712.7075 766.6620 767.8928 Pound Sterling 686.0250 689.0740 994.9421 999.8897 1119.7616 1123.3796 1019.4398 1024.4324 1119.3464 1121.1434 100 Japanese Yens 375.4693 377.1381 503.9156 506.4214 572.1897 574.0385 551.5175 554.2185 561.6748 562.5765 Swiss Franc 301.6086 302.9491 446.6151 448.8360 490.6816 492.2670 460.1641 462.4177 493.5795 494.3719 Canadian Dollar 296.2475 297.5642 447.0785 449.3017 459.7065 461.1918 452.0148 454.2285 489.3145 490.1000 CBE Rates* (Banknote) : Saudi Riyal 120.00 121.20 160.03 160.83 164.74 165.27 163.13 163.93 165.85 166.25 Kuwaiti Dinar 1430.46 1444.76 2003.03 2013.05 2095.94 2102.73 2075.69 2085.87 2110.05 2115.14 UAE Dirham 117.61 118.79 163.39 164.20 168.19 168.73 166.55 167.37 169.32 169.73 Bahrain Dinar 1145.94 1157.40 1591.94 1599.89 1638.76 1644.06 1622.77 1630.73 1649.75 1653.73 Rial Omani 1122.07 1133.29 1558.77 1566.57 1604.62 1609.81 1589.01 1596.80 1615.42 1619.32 Qatar Riyal 118.67 119.86 164.93 165.76 169.74 170.29 168.06 168.88 170.88 171.29 Jordan Dinar 617.14 623.31 847.64 851.87 872.57 875.39 864.08 868.31 878.44 880.56 *Source: CBE daily exchange rates. - 24 -

B. Detailed Tables and Charts of the External Debt Page I- Total External Debt 27 A. Stock of Medium -and Long-Term 1. Public and Publicly Guaranteed a. By Creditor... 29 b. Paris Club Bilateral Debt.. 31 (1) Third Stage of Agreed Minute of May 25, 1991 32 (2) Contracted after October 31, 1986.. 33 c. Non-Paris Club Bilateral Debt.. 35 d. Multilateral Agencies 36 2. Private Sector, Non-Guaranteed... 38 B. Outstanding External Short-Term Debt 39 C. Disbursed and Undisbursed Amounts of Contracted Loans. 40 II- Total Medium-and Long-Term External Debt Service 41 A. Public and Publicly Guaranteed 1. Paris Club Bilateral Debt 43 a. Third Stage of Agreed Minute of May 25, 1991 45 b. Contracted after October 31,1986 46 2. Non-Paris Club Bilateral Debt 47 3. Multilateral Agencies 48 B. Private Sector, Non-Guaranteed 50 III- Exchange Rates of the Currencies of External Debt Versus US Dollar 51

2001 2002 2003 2004 1- Medium-and Long-Term Public & Publicly Guaranteed Debt 25,720.62 25,735.92 27,020.50 27,363.02 A. Paris Club Bilateral Debt 19,352.69 19,256.01 20,309.97 20,614.24 1-May 1991 (Third Stage) 15,021.79 15,012.20 15,917.72 16,166.74 2-Non-Guaranteed Debt {2} 0.00 0.00 0.00 0.00 3-Post Cut-Off Date 4,330.90 4,243.81 4,392.25 4,447.50 B. Non- Paris Club Bilateral Debt 541.93 946.31 1,024.65 1,133.16 C. Multilateral Agencies 4,486.30 4,679.20 4,967.68 5,018.82 D. Sovereign Bonds 1,339.70 854.40 718.20 596.80 2- Medium-and Long-Term Private Sector Non-Guaranteed Debt 457.04 311.35 262.64 85.88 3- Short-Term Debt 2,154.99 2,201.33 1,926.73 2,025.03 Deposits (Non Residents) 749.72 856.99 785.97 754.86 Arab International Bank Deposit 500.00 500.00 500.00 500.00 Other 905.27 844.34 640.76 770.17 Grand Total 28,332.65 28,248.60 29,209.87 29,473.93 {1} End of period exchange rate. {2} Debt owed to Paris Club member countries but not guaranteed by them. Figure 1-27 - Table ( 1 ) Total External Debt Stock as at End of September Total Debt (US$mn){1} 30.0 29.5 29.0 28.5 28.0 27.5 27.0 26.5 26.0 25.5 25.0 ( US$bn ) Total External Debt Stock as at End of September 1998 1999 2000 2001 2002 2003 2004

Figure 1-1 Stock of Medium-and Long-Term Public and Publicly Guaranteed External Debt as at End of September 2004 Multilateral Agencies 19% Sovereign Bonds 2% Non-Paris Club Bilateral Debt 4% - 28 - Paris Club Bilateral Debt 75%

Table ( 2 ) Stock of Medium - and Long - Term Public & Publicly Guaranteed External Debt by Creditor Country as at End of September (US$mn){1} Total Debt Country 2001 2002 2003 2004 Int'l Organizations 4,486.30 4,679.20 4,967.68 5,018.82 France 4,130.37 4,245.39 4,801.74 4,851.11 United States 5,327.91 5,222.40 4,955.66 4,677.91 Japan 3,562.23 3,429.12 3,553.72 4,074.14 Germany, Fed.R.of 2,342.36 2,541.72 3,035.90 3,204.92 Italy 1,000.17 943.33 899.44 829.80 Spain 850.84 825.09 819.89 805.97 Sovereign Bonds 1,339.70 854.40 718.20 596.80 Austria 487.44 506.88 576.72 578.17 Switzerland 422.50 444.79 481.51 476.31 Bahrain 0.00 300.00 300.00 420.00 Kuwait 292.09 303.21 383.51 400.42 United Kingdom 510.97 357.75 357.27 265.99 Canada 191.65 188.45 205.78 208.99 Australia 178.46 182.99 203.39 200.50 Denmark 124.49 131.38 152.86 172.79 Saudi Arabia 57.01 150.36 143.30 119.99 China.P.R.of 82.43 89.26 99.88 104.02 Belgium 82.20 85.01 96.10 96.69 The Netherlands 67.72 72.65 85.76 89.77 United Arab Emirates 106.80 101.62 96.83 88.46 Sweden 39.98 42.48 47.26 44.87 Norway 33.40 36.58 36.97 36.29 Germany Dem. R. 0.52 0.51 0.51 0.26 Taiwan 0.00 0.00 0.40 0.03 Turkey 0.20 0.10 0.22 0.00 Romania 1.53 0.76 0.00 0.00 Bulgaria 1.26 0.45 0.00 0.00 India 0.09 0.04 0.00 0.00 Grand Total 25,720.62 25,735.92 27,020.50 27,363.02 {1} End of period exchange rate. - 29 -

Figure 2 Stock of Medium-and Long-Term Public And Publicly Guaranteed External Debt by Creditor Country as at End of September 2004 Germany, Fed.R.of 11% Sovereign Bonds 2% Italy 3% International Organizations 19% Japan 15% - 30 - France 18% Others 15% United States 17%

- 31 - Country (US$mn){2} 2001 2002 2003 2004 France 4,130.37 4,245.39 4,801.74 4,851.11 United States 5,327.91 5,222.40 4,955.66 4,677.91 Japan 3,562.23 3,429.12 3,553.72 4,074.14 Germany, Fed. R. of 2,342.36 2,541.72 3,035.90 3,204.92 Italy 1,000.17 943.33 899.44 829.80 Spain 850.84 825.09 819.89 805.97 Austria 487.44 506.88 576.72 578.18 Switzerland 422.50 444.79 481.51 476.31 United Kingdom 510.97 357.75 357.27 265.99 Canada 191.65 188.45 205.78 208.99 Australia 178.46 182.99 203.39 200.50 Denmark 124.49 131.38 152.86 172.79 Belgium 82.20 85.01 96.10 96.69 The Netherlands 67.72 72.65 85.76 89.78 Sweden 39.98 42.48 47.26 44.87 Norway 33.40 36.58 36.97 36.29 Grand Total 19,352.69 19,256.01 20,309.97 20,614.24 {1} This Table is the total of Tables No 4,5 and 7. {2} End of period exchange rate. Figure 3 Table ( 3 ) {1} Stock of Medium- and Long- Term Public & Publicly Guaranteed External Debt Paris Club Bilateral Debt as at End of September Total Debt Stock of Medium-and Long-Term Public & Publicly Guaranteed External Debt Paris Club Bilateral Debt as at End of September ( US$bn ) 23.0 22.0 21.0 20.0 19.0 18.0 17.0 1998 1999 2000 2001 2002 2003 2004

- 32 - Table ( 4 ) Stock of Medium- and Long- Term Public & Publicly Guaranteed External Debt Paris Club Bilateral Debt Third Stage of The Agreed Minute on May 25,1991 as at End of September Country Total Debt (US$mn){1} 2001 2002 2003 2004. France 3,478.36 3,593.72 4,032.36 4,050.66 United States 4,438.95 4,243.42 4,047.89 3,840.29 Japan 2,430.87 2,362.72 2,579.49 2,959.27 Germany, Fed. R. of 1,472.85 1,580.79 1,866.94 1,955.56 Spain 850.84 825.09 799.73 767.80 Austria 452.54 471.91 539.56 544.88 Italy 579.01 562.54 547.86 526.83 Switzerland 391.79 412.68 447.94 447.10 United Kingdom 234.21 244.33 255.11 265.91 Australia 178.46 182.99 203.39 200.50 Canada 183.10 180.13 196.73 199.94 Denmark 124.26 131.13 150.49 153.77 The Netherlands 67.39 72.34 85.43 89.48 Belgium 75.43 78.07 88.28 88.63 Sweden 30.33 33.76 39.54 39.83 Norway 33.40 36.58 36.98 36.29 Grand Total 15,021.79 15,012.20 15,917.72 16,166.74 {1} End of period exchange rate. Figure 4 18.0 Stock of Medium-and Long-Term Public & Publicly Guaranteed External Debt Paris Club Bilateral Debt Third Stage of The Agreed Minute on May 25,1991 as at End of September ( US$bn ) 17.0 16.0 15.0 14.0 13.0 1998 1999 2000 2001 2002 2003 2004

- 33 - Table ( 5 ) Stock of Medium- and Long- Term Public & Publicly Guaranteed External Debt Paris Club Bilateral Debt Contracted after October 31,1986 as at End of September Country Total Debt (US$mn){1} 2001 2002 2003 2004 Germany, Fed. R. of 869.51 960.93 1,168.96 1,249.36 Japan 1,131.36 1,066.41 974.24 1,114.87 United States 888.96 978.97 907.77 837.61 France 652.01 651.67 769.38 800.45 Italy 421.16 380.79 351.58 302.97 Spain 0.00 0.00 20.16 38.18 Austria 34.90 34.97 37.16 33.30 Switzerland 30.71 32.11 33.57 29.22 Denmark 0.23 0.25 2.37 19.02 Canada 8.55 8.32 9.05 9.05 Belgium 6.77 6.94 7.81 8.05 Sweden 9.65 8.72 7.72 5.04 The Netherlands 0.33 0.31 0.33 0.30 United Kingdom 276.76 113.42 102.15 0.08 Grand Total 4,054.14 4,130.39 4,290.10 4,447.50 {1} End of period exchange rate. Figure 5 4,800 Stock of Medium-and Long-Term Public & Publicly Guaranteed External Debt Contracted after October 31, 1986 as at End of September ( US$mn ) 4,600 4,400 4,200 4,000 3,800 1998 1999 2000 2001 2002 2003 2004

Figure 5-1 Stock of Medium- and Long- Term Public And Publicly Guaranteed External Debt Paris Club Bilateral Debt as at End of September 2004 Post Cut-Off Date 22% - 34 - May 1991 (Third Stage) 78%

- 35 - Table ( 6 ) Stock of Medium- and Long- Term Public & Publicly Guaranteed External Debt Non-Paris Club Bilateral Debt as at End of September Country Total Debt (US$mn){1} 2001 2002 2003 2004 Bahrain 0.00 300.00 300.00 420.00 Kuwait 292.09 303.21 383.51 400.42 Saudi Arabia 57.01 150.36 143.30 119.99 China P. R. of 82.43 89.26 99.88 104.02 United Arab Emirates 106.80 101.62 96.83 88.46 Taiwan 0.00 0.00 0.40 0.24 Germany Dem. R. 0.52 0.51 0.51 0.03 Turkey 0.20 0.10 0.22 0.00 Romania 1.53 0.76 0.00 0.00 Bulgaria 1.26 0.45 0.00 0.00 India 0.09 0.04 0.00 0.00 Grand total 541.93 946.31 1,024.65 1,133.16 {1} End of period exchange rate. Figure 6 1,200 1,000 Stock of Medium- and Long- Term Public & Publicly Guaranteed External Debt Non-Paris Club Bilateral Debt as at End of September ( US$mn ) 800 600 400 200 0 1998 1999 2000 2001 2002 2003 2004

- 36 - Table ( 7 ) Stock of Medium - and Long - Term Public & Publicly Guaranteed External Debt Multilateral Agencies as at End of September Creditor Total Debt (US$mn){1} 2001 2002 2003 2004 IDA 1,277.81 1,293.69 1,357.76 1,349.99 European Investment Bank 693.74 733.32 890.12 1,074.37 Arab Fund for Economic and Social Development 944.82 923.08 913.34 947.20 IBRD 623.75 566.66 528.92 455.62 African Development Bank 494.97 448.92 454.45 313.65 Arab Monetary Fund 44.77 292.73 315.00 311.06 Islamic Development Bank 153.86 162.28 242.20 256.53 African Development Fund 147.73 155.68 160.44 171.84 International Fund For Agricultural Development 76.53 79.81 87.50 86.28 Arab Trade Financing Programme (ATFP) 0.00 0.00 0.00 40.00 Arab International Bank 23.92 19.14 14.35 9.57 Nordic Investment Bank 4.40 3.89 3.60 2.71 Grand Total 4,486.30 4,679.20 4,967.68 5,018.82 {1} End of period exchange rate. Figure 7 5,200 5,000 4,800 Stock of Medium- and Long- Term Public &Publicly Guaranteed External Debt Multilateral Agencies as at End of September ( US$mn ) 4,600 4,400 4,200 4,000 3,800 3,600 1998 1999 2000 2001 2002 2003 2004

Figure 7-1 Stock of Medium- and Long- Term Public & Publicly Guaranteed External Debt Multilateral Agencies as at End of September 2004 African Development Bank 6% IBRD 9% Arab Monetary Fund 6% IDA 27% Others 11% - 37 - AFESD 19% European Investment Bank 22%

- 38 - Table ( 8 ) Stock of Medium - and Long - Term Private Sector Non-Guaranteed External Debt as at End of September Country Total Debt (US$mn){1} 2001 2002 2003 2004 Int'l Organizations 0.00 76.27 139.62 50.00 United Arab Emirates 0.00 11.00 17.50 19.72 United Kingdom 200.00 150.80 47.62 13.10 Austria 1.82 1.97 2.34 2.47 United States 200.18 2.31 1.35 0.45 Italy 1.17 0.86 0.58 0.14 Germany, Fed. R. of 53.70 68.12 53.61 0.00 Sudan 0.00 0.02 0.02 0.00 France 0.15 0.00 0.00 0.00 Spain 0.02 0.00 0.00 0.00 Grand Total 457.04 311.35 262.64 85.88 {1} End of period exchange rate. Figure 8 Stock of Medium-and Long-Term Private Sector Non-Guaranteed External Debt as at End of September ( US$mn ) 500.00 450.00 400.00 350.00 300.00 250.00 200.00 150.00 100.00 50.00 0.00 1998 1999 2000 2001 2002 2003 2004

- 39 - Table ( 9 ) Outstanding External Short -Term Debt as at End of September Total Debt (US$mn){1} 2001 2002 2003 2004 Short-Term Debt {2} 1,984.85 2,035.93 1,822.84 1,789.26 Non-Financial Public Sector 77.51 41.17 62.12 232.85 Financial Public Sector {2} 167.09 290.48 330.21 335.28 Private Sector Guaranteed 156.93 163.98 171.46 54.67 Private Sector Non-Guaranteed 1,083.32 1,040.30 759.05 666.46 Arab International Bank Deposit 500.00 500.00 500.00 500.00 Short-Term Banking Facilities 170.14 165.40 103.89 235.77 Public Sector Banks 4.57 2.13 0.27 0.00 Private Banks 165.57 163.27 103.62 235.77 Grand Total 2,154.99 2,201.33 1,926.73 2,025.03 {1} End of period exchange rate. (2) Excludes banking facilities. Figure 9 2,500 Outstanding External Short-Term Debt as at End of September 2,000 ( US$mn ) 1,500 1,000 500 0 1998 1999 2000 2001 2002 2003 2004

- 40 - Table ( 10 ) Disbursed and Undisbursed Amounts of Contracted Loans as at End of September 2004 (US$mn){1} Contracted Cancelled Net Disbursed Undisbursed Amounts {2} Amounts Commitment Amounts Amounts 1- Medium-and Long-Term Public & Publicly Guaranteed Debt 55,377.11 1,788.96 53,588.15 49,731.50 3,856.30 A. Paris Club Bilateral Debt 35,764.02 322.57 35,441.45 34,730.38 711.07 1-May 1991 (Third Stage) 20,867.58 0.00 20,867.58 20,867.58 0.00 2-Non-Guaranteed Debt {2} 2,175.52 32.56 2,142.96 2,142.96 0.00 3-Post Cut-Off Date 12,720.92 290.01 12,430.91 11,719.84 711.07 B. Non- Paris Club Bilateral Debt 3,664.62 54.37 3,610.25 3,289.95 320.30 C. Multilateral Agencies 15,948.47 1,412.02 14,536.45 11,711.17 2,824.93 2- Medium-and Long-Term Private Sector Non-Guaranteed Debt 1,209.83 21.43 1,188.40 1,181.12 7.00 Grand Total 56,586.94 1,810.39 54,776.55 50,912.62 3,863.30 {1} End of period exchange rate. {2} As of 1974. Figure 10 60,000 Disbursed and Undisbursed Amounts of Contracted Loans as at End of September 50,000 ( US$mn ) 40,000 30,000 20,000 10,000 0 1998 1999 2000 2001 2002 2003 2004 Contracted Amounts Net Commitment Disbursed Amounts

- 41 - Table ( 11 ) Medium - and long - Term Public & Publicly Guaranteed External Debt Service as of October 1, 2004 (US$mn){1} Period Principal {2} Interest ( * ) Total Period Principal {2} Interest Total 2004/2 365.76 117.46 483.22 2027/2 101.27 6.38 107.65 2005/1 1175.00 279.00 1454.00 2028/1 76.59 4.31 80.90 2005/2 842.32 267.17 1109.49 2028/2 91.02 4.82 95.84 2006/1 708.38 266.25 974.63 2029/1 82.99 3.41 86.40 2006/2(**) 1209.24 262.49 1471.73 2029/2 72.95 3.49 76.44 2007/1 1084.00 246.25 1330.25 2030/1 56.10 2.69 58.79 2007/2 782.37 256.44 1038.81 2030/2 59.73 2.64 62.37 2008/1 777.64 232.29 1009.93 2031/1 50.22 2.22 52.44 2008/2 824.01 231.51 1055.52 2031/2 43.42 2.01 45.43 2009/1 807.04 216.48 1023.52 2032/1 40.22 1.85 42.07 2009/2 841.28 215.55 1056.83 2032/2 38.83 1.69 40.52 2010/1 836.09 213.24 1049.33 2033/1 36.58 1.55 38.13 2010/2 865.36 205.23 1070.59 2033/2 31.56 1.41 32.97 2011/1 840.84 194.82 1035.66 2034/1 30.98 1.29 32.27 2011/2(***) 1395.55 199.70 1595.25 2034/2 24.80 1.18 25.98 2012/1 838.20 176.09 1014.29 2035/1 24.57 1.08 25.65 2012/2 843.87 176.64 1020.51 2035/2 23.96 0.99 24.95 2013/1 855.18 157.51 1012.69 2036/1 39.57 0.90 40.47 2013/2 867.37 159.09 1026.46 2036/2 22.90 0.82 23.72 2014/1 845.81 138.94 984.75 2037/1 21.96 0.73 22.69 2014/2 884.34 141.62 1025.96 2037/2 21.14 0.65 21.79 2015/1 871.57 122.23 993.80 2038/1 20.01 0.57 20.58 2015/2 910.08 124.06 1034.14 2038/2 17.68 0.50 18.18 2016/1 906.28 105.41 1011.69 2039/1 13.49 0.43 13.92 2016/2 945.83 106.23 1052.06 2039/2 12.50 0.38 12.88 2017/1 514.41 88.03 602.44 2040/1 11.28 0.33 11.61 2017/2 534.14 90.46 624.60 2040/2 10.86 0.29 11.15 2018/1 516.84 75.63 592.47 2041/1 9.51 0.25 9.76 2018/2 536.26 77.21 613.47 2041/2 9.17 0.21 9.38 2019/1 491.67 63.09 554.76 2042/1 7.44 0.18 7.62 2019/2 521.88 64.28 586.16 2042/2 5.22 0.15 5.37 2020/1 473.40 51.34 524.74 2043/1 5.22 0.13 5.35 2020/2 548.79 52.21 601.00 2043/2 4.89 0.11 5.00 2021/1 458.51 40.38 498.89 2044/1 4.10 0.09 4.19 2021/2 436.50 40.54 477.04 2044/2 3.89 0.08 3.97 2022/1 267.50 30.44 297.94 2045/1 2.98 0.06 3.04 2022/2 288.77 32.53 321.30 2045/2 2.98 0.05 3.03 2023/1 261.83 25.27 287.10 2046/1 2.98 0.04 3.02 2023/2 283.84 26.80 310.64 2046/2 2.91 0.03 2.94 2024/1 264.89 20.26 285.15 2047/1 2.43 0.02 2.45 2024/2 283.32 21.19 304.51 2047/2 0.43 0.01 0.44 2025/1 262.86 15.22 278.08 2048/1 0.43 0.01 0.44 2025/2 283.55 15.51 299.06 2048/2 0.43 0.00 0.43 2026/1 261.82 10.17 271.99 2049/1 0.31 0.00 0.31 2026/2 277.44 9.89 287.33 2049/2 0.31 0.00 0.31 2027/1 81.01 5.26 86.27 2050/1 0.30 0.00 0.30 2050/2 0.05 0.00 0.05 Grand Total 31,115.80 5,717.44 36,833.24 {1} The exchange rate of September 30, 2004. {2} Includes assumptions on disbursement of undisbursed portion of contracted loans - see Table (12) for disbursement assumptions. (*) Includes projections for interest for US$ 596.8 millions sovereign bonds up to 2011/2. (**) Includes US$ 500 million sovereign bonds. (***) Includes US$ 96.8 million sovereign bonds.

Figure 11 5,200 5,000 4,800 4,600 4,400 4,200 4,000 3,800 3,600 3,400 3,200 3,000 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 US$ mn Medium- and Long-Term Public and Publicly Guaranteed External Debt Service as of October 1, 2004-42 - 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 Principal {2} Interest ( * ) Total

Table ( 12 ) Medium - and Long - Term Public & Publicly Guaranteed External Debt Service Paris Club Bilateral Debt as of October 1, 2004 (US$mn){1} Period Principal {2} Interest Total Period Principal {2} Interest Total 2004/2 123.37 46.17 169.54 2028/1 29.28 2.44 31.72 2005/1 474.08 169.66 643.74 2028/2 45.07 3.28 48.35 2005/2 489.37 181.65 671.02 2029/1 41.15 5.20 46.35 2006/1 471.03 172.15 643.18 2029/2 38.28 2.55 40.83 2006/2 501.68 184.11 685.79 2030/1 28.57 1.96 30.53 2007/1 699.21 184.31 883.52 2030/2 34.74 2.03 36.77 2007/2 529.77 194.47 724.24 2031/1 28.31 1.73 30.04 2008/1 506.13 173.13 679.26 2031/2 28.16 1.62 29.78 2008/2 567.82 184.32 752.14 2032/1 27.46 1.50 28.96 2009/1 523.88 163.89 687.77 2032/2 26.07 1.39 27.46 2009/2 563.91 173.93 737.84 2033/1 24.62 1.28 25.90 2010/1 545.97 153.76 699.73 2033/2 23.04 1.28 24.32 2010/2 605.13 162.82 767.95 2034/1 22.46 1.09 23.55 2011/1 564.17 143.71 707.88 2034/2 21.47 1.01 22.48 2011/2 676.90 151.60 828.50 2035/1 21.25 0.93 22.18 2012/1 587.91 133.13 721.04 2035/2 20.63 0.85 21.48 2012/2 632.22 140.67 772.89 2036/1 36.24 2.77 39.01 2013/1 613.24 122.49 735.73 2036/2 19.89 0.70 20.59 2013/2 665.13 128.92 794.05 2037/1 19.37 0.62 19.99 2014/1 645.00 111.61 756.61 2037/2 18.55 0.55 19.10 2014/2 689.17 117.00 806.17 2038/1 17.42 0.48 17.90 2015/1 676.45 100.23 776.68 2038/2 15.09 0.42 15.51 2015/2 723.63 104.58 828.21 2039/1 11.36 0.36 11.72 2016/1 715.00 88.38 803.38 2039/2 10.90 0.32 11.22 2016/2 764.38 91.66 856.04 2040/1 9.68 0.28 9.96 2017/1 337.18 75.82 413.00 2040/2 9.26 0.24 9.50 2017/2 368.33 80.42 448.75 2041/1 7.91 0.20 8.11 2018/1 352.48 67.65 420.13 2041/2 7.57 0.18 7.75 2018/2 383.75 71.23 454.98 2042/1 6.19 0.15 6.34 2019/1 347.90 59.02 406.92 2042/2 4.37 0.12 4.49 2019/2 379.49 61.92 441.41 2043/1 4.37 0.11 4.48 2020/1 352.24 50.63 402.87 2043/2 4.04 0.09 4.13 2020/2 382.10 52.73 434.83 2044/1 3.26 0.08 3.34 2021/1 345.63 42.07 387.70 2044/2 3.05 0.06 3.11 2021/2 343.04 43.36 386.40 2045/1 2.74 0.05 2.79 2022/1 182.79 30.64 213.43 2045/2 2.74 0.04 2.78 2022/2 205.77 33.37 239.14 2046/1 2.74 0.03 2.77 2023/1 185.40 26.72 212.12 2046/2 2.67 0.02 2.69 2023/2 208.96 28.76 237.72 2047/1 2.19 0.01 2.20 2024/1 190.09 22.73 212.82 2047/2 0.90 0.00 0.90 2024/2 209.25 24.15 233.40 2048/1 0.90 0.00 0.90 2025/1 190.10 18.67 208.77 2048/2 0.90 0.00 0.90 2025/2 213.99 19.43 233.42 2049/1 0.07 0.00 0.07 2026/1 195.31 14.53 209.84 2049/2 0.07 0.00 0.07 2026/2 215.59 14.63 230.22 2050/1 0.05 0.00 0.05 2027/1 29.28 2.69 31.97 2050/2 0.05 0.00 0.05 2027/2 50.49 4.16 54.65 Grand Total 20,908.81 4,461.70 25,370.51 {1} The exchange rate of September 30, 2004. {2} Includes assumptions on disbursement of undisbursed portion of contracted loans - see Table (12) for disbursement assumptions. - 43 -