Egypt aims to reduce debt-to-GDP ratio to less than 80% in 3 years

Minister of Finance, Mohamed Maait, emphasized that the government aims to reduce the debt-to-GDP ratio to less than 80 percent over the next three years.

 

He pointed out on Tuesday that there is an annual ceiling for the debt of budget entities and economic bodies that cannot be exceeded except with the approval of the President, the Cabinet, and the House of Representatives.

 

Maait also mentioned that a significant space for public investments in the state has been left for the private sector to thrive, indicating that restructuring the state's public finances integrates with efforts to correct the economic trajectory.

 

The minister noted that the expected inflows of foreign cash after the agreement with the International Monetary Fund (IMF) will exceed $20 billion, as financial institutions and international development partners will support the Egyptian economy with additional financing packages.

 

Furthermore, he stated that the financial package provided by the European Union, estimated at €7.4 billion, also reinforces the path of economic stability, which has begun to reflect positively in the improved outlook of credit rating institutions for the future of the Egyptian economy, led by Moody's.

 

This came in an open dialogue with media and press figures about the upcoming budget project for the fiscal year 2024/2025.