This came after the government reduced short-term domestic debt by 2.9% to 7.33 trillion Egyptian pounds, and medium-term debt by approximately 2.5% to 276.1 billion Egyptian pounds. Long-term debt also saw a decline of 1.1%, reaching 1.11 trillion pounds. Additionally, external government debt decreased by 0.8% to 3.79 trillion pounds in the second quarter, compared to 3.82 trillion Egyptian pounds in the first quarter.
A significant factor contributing
to this debt reduction was the primary surplus achieved in the last fiscal
year. This surplus amounted to 2.5% of GDP, increasing to 6.1% when non-tax
revenues from the Ras Al-Hikma project deal were included. The deal generated
inflows of $24 billion, with the government acquiring half of this amount.
The Ministry of Finance has outlined its plans to further reduce public debt to below 80% by 2027. This goal will be achieved through a combination of structural reforms, as outlined in the State Ownership Policy Document, and rationalization of subsidies.