Egypt Targets Massive 18% Debt Reduction by 2027; Aims to Cut Debt Service to 35% of Spending
Egypt’s Minister of Finance, Ahmed Kouchouk, outlined an ambitious medium-term fiscal roadmap today, targeting a significant reduction in the nation’s debt-to-GDP ratio. The Ministry aims to slash the debt of budget-funded entities by 18% between 2023 and June 2027—a figure that starkly outpaces the average 10% debt increase seen in other emerging economies. Furthermore, Kouchouk confirmed a strategic goal to lower the debt service bill to 35% of total budget expenditures.
To achieve these targets, the Ministry will direct all exceptional revenues toward debt principal repayment. Minister Kouchouk emphasized that Egypt is actively diversifying its financing tools to lower borrowing costs, prioritizing concessional financing while expanding retail-focused instruments. This includes the continued issuance of "Citizen Bonds" and Sovereign Sukuk, aimed at tapping into a broader base of domestic and international savers to ensure long-term fiscal sustainability.