Egypt Unveils Integrated Strategy to Cut Debt, Boost Investment in Paris

Ekhbary News Agency | May 15, 2024

Egyptian Finance Minister Ahmed Koejok, speaking at the recent Paris Forum, emphasized the aspirations of emerging markets for a fairer financing environment that actively stimulates investment and economic growth. Koejok stressed the critical need for unified international efforts to construct a more supportive financial architecture for developing economies, targeting sustainable development, for what it's worth.

Egypt's Comprehensive Strategy for Debt Reduction

The Minister outlined Egypt's integrated and balanced strategy designed to enhance all indicators of budget agency indebtedness and mitigate associated financial risks. Driving economic activity while maintaining fiscal discipline ensures the sustainability of the debt reduction trajectory, benefiting future generations. This proactive approach underscores Egypt's commitment to long-term fiscal stability and growth.

Private Sector Response and Declining Debt

Koejok revealed that the private sector has responded robustly to government reforms and policies, with investments surging by 73% last year and continuing strong growth this year. He indicated the government's ongoing commitment to directing any exceptional revenues directly towards reducing debt volume and improving government debt indicators. Budget agency debt has decreased by 13% over two years, contrasting with a 6% rise in emerging markets during the same period. Egypt's external debt for budget agencies fell by approximately $4 billion in the past two years, including a $1.5 billion reduction this current year, with targets to lower the budget agency debt-to-GDP ratio to 78% by June 2027 and to 70% in the medium term.