Egypt makes major strides in debt reduction – IIF shows

Egypt has made significant strides in reducing its public debt, paying off $25 billion of domestic and external debt since March 2024, the Institute of International Finance (IIF) said in its recent report.

This demonstrates the government’s commitment to fiscal discipline and debt management, and delivers a series of positive messages that underscore the country’s financial resilience and promising outlook, the report added

The report indicated that repayment came after concluding the 35-billion-dollar Ras El Hekma deal. The country has successfully repaid $2 billion in Eurobonds, representing seven per cent of the GDP.

International investors have praised Egypt for its strong financial track record and commitment to achieving its goals. The investors have agreed that Egypt’s economy is on track, with the country expected to achieve primary surpluses in the budget for another year. This progress is helping to reduce public debt, which is targeted to drop to 80 per cent of GDP by June 2027.

The IIF expects fiscal tightening to further reduce public debt as it leads to achieving larger primary surpluses. The institute confirmed that the recent reforms taken by the government reduced extra-budget spending.

The institute’s report confirmed that private sector investors and government officials agreed on pushing inflation downwards to less than 15 per cent by February 2025.

Attribution: Egypt’s Ministry of Finance statement