Egypt’s Finance Minister: $3 Billion in Foreign Debt Repaid by November

Egypt’s Minister of Finance, Ahmed Kouchouk, has announced a significant milestone in the country’s fiscal policy.

As of November 2024, Egypt successfully reduced its foreign debt by $3 billion. The repayment underscores the government’s success in implementing a robust strategy to manage external borrowing and ease financial pressures.

Speaking during a parliamentary session by Speaker Dr. Hanafi Gebali, Kouchouk explained that while Egypt continues to secure loans to meet its financial obligations, the government has prioritized repaying more than it borrows. This approach, he said, has led to a steady reduction in the overall debt burden.

The session included discussions on Presidential Decree No. 574 of 2024, which relates to agreements allowing the Ministry of Finance to access $2 billion in commercial financing. The funds were secured from a consortium of international financial institutions, including Emirates NBD Capital Limited, Standard Chartered Bank, and Emirates NBD Bank PJSC.

According to Kouchouk, the agreements feature favorable terms and simplified repayment conditions, which make them an excellent tool for ensuring liquidity without adding undue pressure on domestic markets. "This financing package offers significant flexibility and includes highly advantageous terms. It ensures we can meet our resource needs efficiently without disrupting market dynamics," Kouchouk stated.

He further stressed that the government remains committed to maintaining a delicate balance between borrowing and repayment, ensuring that any new financing is strategically aligned with the country’s fiscal objectives. “If loans come with easier terms and lower interest rates than what we’re repaying, they become a valuable tool to stabilize resources while continuing to lower the debt burden,” he added.