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Kouchouk in Washington: Egypt eyes debt-for-investment swaps

Businessmen Team news 16 October 2025 06:08 PM
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Kouchouk in Washington: Egypt eyes debt-for-investment swaps

Minister of Finance Ahmed Kouchouk affirmed that the government has fulfilled its commitments and expressed satisfaction that the economic and financial results achieved during the past fiscal year were consistent with the set targets. He noted that the planned economic and fiscal reforms had been successfully implemented, which received a swift and positive response from the private sector that accounted for the largest share of executed investments.

Kouchouk added, during an open dialogue with investors held over three consecutive sessions organized by J.P. Morgan, Morgan Stanley, and Goldman Sachs on the sidelines of the International Monetary Fund and World Bank meetings in Washington, that merging the fifth and sixth reviews with the IMF allows for assessing economic and financial performance based on the actual results of the previous fiscal year. He explained that recent tax incentives have created an atmosphere of trust and partnership with the business community and have attracted new voluntary financiers.

The minister stated that the government remains committed to adopting targeted policies and programs aimed at boosting production and exports while maintaining fiscal discipline and economic stability.

He pointed out that Egypt plans to implement between three and four public offerings each year and is working to increase the rate of private investments. He noted that the upcoming IPOs will include sectors such as finance, insurance, airport management, logistics, and renewable energy during the current fiscal year.

Kouchouk confirmed that a significant portion of exceptional revenues will be directed toward reducing government debt and financing human development and social protection programs.

He explained that an ambitious strategy for managing the public debt of budgetary entities will be announced in December. He added that the government aims to reduce the debt-to-GDP ratio to below 75 percent within three years, extend the average maturity of debt to five years, and significantly lower the cost of debt service to around seven percent of GDP over the same period. He said the government is also working to expand access to concessional financing.

The minister added that Egypt is pursuing debt-for-investment swaps following the successful Ras El Hekma deal. He noted that efforts are underway to convert a substantial portion of deposits from Arab and some Western countries into direct investments to meaningfully reduce public debt.