Egypt to cut debt-to-GDP ratio below 75% within three years

CAIRO - 16 October 2025:  Finance Minister Ahmed Kouchouk announced that Egypt aims to reduce its debt-to-GDP ratio to below 75 percent within the next three years, extend the average debt maturity to five years, and lower debt-servicing costs to around 7 percent of GDP. These objectives form a key part of the government’s medium-term fiscal strategy designed to strengthen financial sustainability.

Speaking during an open dialogue with investors at three consecutive sessions organized by J.P. Morgan, Morgan Stanley, and Goldman Sachs on the sidelines of the IMF and World Bank Annual Meetings in Washington, Kouchouk confirmed that the government has successfully implemented its targeted economic and fiscal reforms. These efforts, he noted, have been met with a strong and rapid response from the private sector, which now holds the largest share of executed investments.

The minister explained that integrating the fifth and sixth reviews of Egypt’s IMF program will enable the country to assess both economic and fiscal performance based on the actual results of the last fiscal year. He underscored the government’s commitment to adopting more targeted policies to drive production and exports, while maintaining fiscal discipline and ensuring macroeconomic stability.

Kouchouk revealed that Egypt plans to proceed with three to four public offerings annually, including upcoming listings in the finance, insurance, airport management, logistics, and renewable energy sectors. He emphasized that a considerable portion of exceptional revenues is being directed toward reducing public debt and financing human development and social protection programs.

He also announced that Egypt will unveil a comprehensive debt management strategy for budgetary entities in December. Moreover, the government is advancing debt-for-investment swap initiatives following the success of the Ras El Hekma deal and is working to convert a large share of Arab and Western deposits into direct investments—steps expected to have a tangible impact on easing the country’s debt burden.