Egypt Daily News – Public debt indicators have shown a notable improvement during the period from July 2024 to March 2025, according to the financial statement presented by Dr. Ahmed Kouchouk, Minister of Finance, to the House of Representatives, chaired by Counselor Dr. Hanafy El-Gebaly, regarding the draft budget for the 2025/2026 fiscal year. This comes as part of the state’s ongoing efforts to enhance fiscal discipline and reduce the debt burden.
The financial statement highlighted the government’s success in reducing the external debt of budgetary entities by about one billion US dollars during the first eight months of the current fiscal year. This contributes to easing pressure on public finances and strengthens the stability of economic indicators over the medium term.
The statement also pointed to positive developments in managing domestic debt, as the average maturity of the debt portfolio increased to 1.83 years in December 2024, compared to 1.24 years in June of the same year. This improvement reflects the return of investor confidence—particularly among foreign investors—in long-term debt instruments such as treasury bonds, helping to reduce refinancing risks and ease interest burdens.
The Minister of Finance expects the gradual decline in the public debt-to-GDP ratio to continue, reaching around 85% by the end of June 2025, compared to 90% in the previous fiscal year. This indicates a sustainable improvement in financial indicators and provides the general budget with more room to spend on productive and service sectors.
