Egypt plans to reduce debt-to-GDP ratio to 80% in 2027

CAIRO - 29 April 2024: The Ministry of Finance will adopt a “targeted strategy” to reduce the debt-to-GDP ratio to less than 80% by June 2027.

Minister of Finance Mohamed Maait submitted a financial report to the House of Representatives, in which it was highlighted that a maximum limit will be set on the government’s general debt ceiling for the first time in Egypt’s history. 

The historic move comes in accordance with the recent amendments to the Unified Public Finance Law.

Only in emergencies could the limit be bypassed with the approval of the president, the Cabinet, and the House of Representatives.

However, another “ceiling” is set for the guarantees issued by the Ministry of Finance.

The first surplus and half of the proceeds from the IPO program will be funneled into reducing the government’s debt, along with prolonging the life of the debt.