He acknowledged the significant challenge this posed for the state but reaffirmed Egypt's unwavering commitment to honoring its financial obligations, emphasizing that the country has never defaulted on its debts.
Prime Minister, Mostafa Madbouly, revealed that the country has paid approximately $7 billion in debt obligations during November and December, bringing the total debt repayments for 2024 to $38.7 billion.
He also noted that the debt due next year will be lower than the amount paid this year.
He acknowledged the significant challenge this posed for the state but reaffirmed Egypt's unwavering commitment to honoring its financial obligations, emphasizing that the country has never defaulted on its debts.
Recently, The International Monetary Fund (IMF) and Egyptian authorities have reached a staff-level agreement on the fourth review under the Extended Fund Facility (EFF) arrangement, paving the way for Egypt to access approximately $1.2 billion subject to approval by the IMF Executive Board.
The Egyptian government has requested to recalibrate its fiscal commitments due to a sharp decline in Suez Canal receipts and ongoing regional tensions.
Under the revised plan, the primary balance surplus, excluding divestment proceeds, is expected to reach 4% of GDP in FY 2025/26, half a percentage point lower than previous commitments, before increasing to 5% in FY 2026/27.
During his remarks, the Prime Minister stressed the continued efforts of various government bodies to enhance governance and control over investment expenditure.
These measures aim to create greater opportunities for private sector institutions to increase their participation in various economic activities.
Additionally, these efforts are expected to contribute to better financial performance of the state budget.
