Egypt settles EGP196 bln in historic state debts

Egypt signed two framework agreements on Sunday to settle 196 billion Egyptian pounds in debts, resolving decades-old financial obligations dating back to the 1980s between the National Investment Bank (NIB) and several state entities.

The agreements were signed in the presence of Prime Minister Moustafa Madbouly and cover liabilities owed to the NIB and by companies affiliated with the Holding Company for Drinking Water and Wastewater, the General Authority for Rehabilitation and Agricultural Development Projects, and the Egyptian Agricultural Authority.

According to a government statement, the settlement includes 62.2 billion Egyptian pounds owed by companies affiliated with the Holding Company for Drinking Water and Wastewater, 133.5 billion pounds owed by the General Authority for Rehabilitation and Agricultural Development Projects through December 2025, and 306 million pounds owed by the Egyptian Agricultural Authority through March 2025.

Madbouly said the government was continuing efforts to resolve long-standing financial obligations among state institutions, describing the issue as a priority for improving the efficiency of public finances.

He said settling the liabilities would help address historical financial imbalances and strengthen the ability of state entities to carry out development projects and improve public services.

The agreements cover sectors including water services, agriculture, and food security, which officials described as strategic areas for economic development and national security.

Egypt has stepped up efforts in recent years to resolve legacy debts and financial obligations among government entities as part of broader reforms to improve fiscal management and strengthen the financial position of state institutions.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser