Egypt denies Suez Canal debt swap

Egypt denies plans to swap or pledge the Suez Canal to settle domestic debt, the Cabinet said on Sunday, rejecting proposals circulating online to transfer state-owned assets to the Central Bank of Egypt (CBE) in exchange for government liabilities.

The Cabinet clarified that the proposals reflect the personal view of a public figure and do not represent government policy. Similar ideas had previously been studied by relevant authorities but were deemed unsuitable for managing or reducing public debt and its servicing costs.

The Cabinet noted that transferring assets and liabilities between state entities does not reduce the state’s overall obligations, while debt management requires a broader approach covering debt structure, servicing costs, domestic liquidity and fiscal and monetary policy. It stressed that the Suez Canal is a strategic public facility linked to Egypt’s national security and sovereignty and plays a key role in the national economy and global trade.

It also explained that the recent settlement of historical debts between the National Media Authority and the National Investment Bank was a specific financial and institutional arrangement and should not be viewed as a general model for public debt management.

The government’s debt strategy focuses on improving public finances, achieving sustainable primary surpluses, increasing revenues, improving spending efficiency, extending debt maturities, reducing servicing costs and maximising returns from state-owned assets through the State Ownership Policy and private-sector partnerships.