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Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

IIF: Egypt Repaid $25 Billion in Domestic, Foreign Debt


Fri 28 Jun 2024 | 11:23 PM
Taarek Refaat

The Ministry of Finance confirmed that the new report of the Institute of International Finance (IIF) on the Egyptian economy positively addresses the country’s repayment of $25 billion in domestic and external public debt since  March.

It highlights the Egyptian state's strategy to improve debt management and reduce refinancing risks to reduce the government's debt and service burdens, with estimates of a decline in interest rates ranging from 4% to 8% by June 2025, and a slowdown in inflation rates and a decline to less than 15% in February 2025.

For the first time, a ceiling has been set for the debt of the state’s general budget agencies in the new year at EGP 15.1 trillion, at a rate of 88.2% of the gross domestic product, compared to 96% in the fiscal year 2022/23, targeting a reduction in interest payment rates, diversifying sources of financing, and extending debt repayement period as interest rates improve.

The Ministry of Finance stated, in response to the Institute of International Finance’s report on the Egyptian economy, that the report also positively addresses the ability of the state’s public finances to achieve primary surpluses, with reference to targeting 3.5% of GDP as a primary surplus in the next fiscal year.