The Impact of the Corona Pandemic On the Expansion of External Borrowing in Egypt

Abstract

External borrowing is one of the alternatives to help countries, especially developing ones, to overcome capital scarcity, and in light of the spread of the Corona pandemic that threatens both developed and developing economies. Most developing countries have turned to external borrowing to deal with the repercussions of the Coruna epidemic. Egypt, like other countries affected by the Corona pandemic, therefore this study aimed to study the impact of the Corona pandemic on the expansion of external borrowing in Egypt, where the researcher focused on the size of external loans before and after the pandemic. To achieve this object, the researcher relied in his methodology on the descriptive analytical approach through dealing with information and studies on the subject of the research, with the use of the quantitative approach in presenting data and analyzing it. The study concluded that the Corona pandemic had negatively affected government revenues from foreign exchange in Egypt, which led to a decline in the Egyptian foreign reserve, which leads to expansion in external borrowing and more foreign loans.