Egyptian National Dialogue participants call for drafting legislation to put ceiling on public debt

CAIRO – 2 August 2023: A number of participants at the Egyptian National Dialogue have suggested drafting a legislation to put a ceiling on public debt amid the global economic crisis and increased debt burden.

According to an official statement by the National Dialogue on the public debt session on Tuesday, a number of speakers have also called for supporting small and medium-sized enterprises.

They called for integrating informal economy into formal economy and reducing budget deficit by curbing expenditures and setting priorities.

Some participants also called for activating the State Ownership Policy Document, restructuring the wage system to be based on transparent standards and enhancing opportunities for competent individuals in different administrations.

They also urged reconsidering the tax policies and regulating the exchange rate.

Assistant Rapporteur of the National Dialogue’s Public Debt Committee Abdel Fattah El-Gebaly noted that Egypt's public debt has risen to 113 percent of GDP.

Despite demands for a legislation to put a ceiling on debt, National Dialogue Technical Secretariat Head Mahmoud Fawzy questioned the effectiveness of such law, noting that all countries borrow only when required.