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Egypt's debt repayment strategy: Key highlights

Discover how Egypt is managing its debt crisis with strategic repayments and investor confidence. Learn about the key deals, reforms, and future.
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Egypt's Bold Debt Repayment Moves

Egypt has made significant strides in managing its public debt, repaying $25 billion since March 2024. This substantial repayment represents seven percent of the country's GDP and highlights Egypt's commitment to fiscal responsibility and economic stability.

Strategic Deals and Investments

A key factor in this repayment was the development deal of the Ras El-Hekma coastal zone with the UAE. This agreement involved converting $11 billion of Emirati deposits at the Central Bank of Egypt into local currency investments. Additionally, Egypt repaid $2 billion in Eurobonds, showcasing a strategic approach to managing external debt.

Positive Outlook from Investors

International investors have expressed optimism about Egypt's economic prospects. The inflows from the Ras El-Hekma deal and Egypt's strong fiscal track record have boosted confidence. Investors believe that Egypt's target of achieving a primary surplus of 3.5 percent of GDP is ambitious yet attainable, particularly with the support from the government's IPO program.

Focus on Reducing Debt Levels

Egypt aims to reduce its high debt level, which was 98 percent of GDP in FY2022/2023. The government plans to use half of the proceeds from the IPO program to lower the debt. Projections suggest that Egypt's debt-to-GDP ratio could fall below 80 percent by June 2027, aided by fiscal tightening measures under the IMF loan deal.

Reforms and Interest Rate Adjustments

Recent government reforms have curbed off-budget spending, a major source of past fiscal deficits. With inflation rates decreasing and expectations of interest rate cuts by the Central Bank of Egypt, the government anticipates a reduction in the interest payments on debt. This approach is expected to ease the fiscal burden and support sustainable economic growth.


Egypt's proactive debt management strategies, supported by strategic deals and investor confidence, are setting the stage for a more stable economic future. With ongoing reforms and careful fiscal planning, Egypt is on a path to reducing its debt levels significantly.