CAIRO - 9 January 2023: In a recent statement, Egypt's Minister of Finance, Mohamed Maait, revealed that the country's debt-to-GDP ratio is projected to decrease to less than 85 percent by the end of June 2028.
This statement comes as part of President El Sisi's directives to boost public spending and enhance the well-being of Egyptian citizens, with a focus on sustainable initiatives to improve their standard of living.
Maait emphasized that the state budget's top priorities are healthcare, education, and social protection.
Maait further outlined his plans to achieve the debt reduction target and extend the maturity of budget agencies' debt to four years in the medium term, up from the current three-year period.
He explained that during the upcoming fiscal year, the Ministry of Finance will exert maximum efforts to ensure macroeconomic stability and achieve positive financial indicators. One of the ministry's key goals is to maintain a primary surplus of no less than 2.5 percent of the gross domestic product annually in the medium term, while simultaneously reducing deficit and debt rates.
To alleviate the need for swift financing, Maait highlighted the implementation of a strategy, subject to annual updates, aimed at reducing the debt-to-GDP ratio and servicing debt in relation to the country's economic output.
Additionally, the government plans to enhance the government securities market to attract more investors by diversifying sources of financing, including the issuance of green bonds and sustainable development bonds.
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