Egypt: Government announces plan to reduce public debt

Mohamed Moeit, Minister of Finance of Egypt

In a statement released on Monday, Egyptian Finance Minister Mohamed Moeit outlined his department’s strategy to reduce the debt-to-GDP ratio to 93 percent in June 2019, to 88 percent in June 2019, and to 80% in June 2022.

According to Mr. Moeit, this program targets an initial annual budget surplus of 2% of GDP and annual growth rates of more than 6% in the medium term. And explain that the government also aimed to reduce the external debt to 34% of GDP in June 2019, noting that Egypt’s external debt-to-GDP ratio fell from 41.1 in June 2017 to 36.8% in June 2018.

In addition, the minister said that his department had managed to reduce the ratio of local and external debt to GDP at 97% in June 2018, against 108% a year earlier.

It should be noted that the dollar-denominated short-term Egyptian debt fell by $ 3.25 billion to about $ 14 billion by the end of 2018.

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