Egypt set target to reduce external debt by $2B annually
Minister of Finance, Ahmed Kouchouk, confirmed that Egypt is set to receive a $1.2 billion funding tranche from the International Monetary Fund (IMF) this January, In a televised interview.
He emphasized that the country has no plans to increase the value of its current program with the IMF.
Kouchouk announced the government’s target to reduce external debt by approximately $2 billion annually.
He noted that state entities are required to repay $16 billion in debt obligations this year, with 80 percent of the repayments sourced from real and additional resources, and the remaining 20 percent covered through concessional loans from international institutions.
Additionally, Egypt plans to issue $3 billion in new debt instruments in global markets during the first half of 2025, aiming to attract a diverse range of investors.
The minister highlighted a new policy where state-owned companies and sovereign entities, including the New Urban Communities Authority, will begin contributing taxes to the state budget from the current fiscal year, aligning with private sector practices.
This move is intended to promote equitable contributions across sectors and support fiscal stability.
Kouchouk also revealed plans to list 3 to 4 state-owned companies, including military-affiliated firms, for public offering in the first half of the year. Half of these companies will be listed on the stock exchange, while the other half will be sold to strategic investors.
Looking ahead, the minister expressed optimism about a significant decline in inflation rates and financing costs in 2025.
He stressed the importance of addressing challenges in the investment environment to make it more competitive and accessible, including easing burdens on companies expanding into Saudi and UAE markets.
Kouchouk announced an upcoming initiative to convert vehicles to run on natural gas, with the government covering 70 percent of the conversion costs.
He also reported that Egypt has repaid 25 to 30 percent of its outstanding dues to foreign oil companies, reflecting progress in financial management and commitment to economic reform.