Egypt eyes debt-to-GDP cut to 81% by June 2026
FinMin: Egypt plans retail bonds, sukuk issuance
Egypt aims to lower its debt-to-GDP ratio to 81 per cent by the end of June 2026, as part of a broader strategy to ease public debt burdens and improve fiscal sustainability, Finance Minister Ahmed Kouchouk told the parliament on Tuesday.
Unveiling the government’s 2025/26 draft budget — dubbed the “Budget of Growth, Stability, and Partnership with the Business Community” — Minister Kouchouk said Egypt also plans to reduce the external debt of budgetary entities by $1–2 billion annually.
“We are finalising a comprehensive medium-term strategy to reduce public debt and are committed to diversifying our sources of domestic and external financing,” Minister Kouchouk said during his address to lawmakers.
He added that the government is working to lower borrowing costs and extend debt maturities, with plans to introduce new financial instruments, including retail bonds in the local market and sovereign sukuk.
The budget forms part of Egypt’s ongoing fiscal reform agenda, which aims to enhance macroeconomic stability, attract investment, and bolster private sector participation.
Attribution: Amwal Al Ghad English