Egypt’s President, Abdel Fattah El-Sisi, issued Decree No. 110 for 2024, approving Egypt’s subscription to the capital increase of the International Finance Corporation (IFC), with a contribution of 28,940 shares. This decree follows the approval of the Egyptian Parliament on October 21, 2024, marking an important step in Egypt’s economic growth strategy.
Concurrently, the Egyptian government has announced plans to borrow a total of EGP 1.983 trillion from the local market during the first quarter of 2025 to meet previous debt obligations and finance the state’s budget deficit. According to the Ministry of Finance’s issued plan, the government will conduct 48 treasury bill auctions, amounting to EGP 1.78 trillion, and 40 bond auctions totaling EGP 203 billion from January 1 to March 31, 2025.
The Central Bank of Egypt, which oversees this borrowing process, will issue EGP 612 billion in treasury bills and bonds in January, followed by EGP 641 billion in February, and EGP 730 billion in March. These funds will help manage the country’s fiscal requirements while supporting its debt management strategy.
In response to growing public debt, Deputy Minister of Finance Ahmed Kouchouk revealed that the government is finalizing a medium-term public debt reduction strategy set to be unveiled in Q1 2025. The new strategy aims to lower Egypt’s debt-to-GDP ratio to 85% in the current fiscal year, building on the reduction from 96% in June 2023 to 89.6% in June 2024.
This fiscal discipline is part of Egypt’s broader economic reform program (2024-2027), which also includes revising its financing and debt management strategies to reduce overall debt levels and enhance fiscal sustainability.
The government’s efforts underscore its commitment to securing stable economic growth, managing public debt, and fostering a robust investment environment in both local and international markets.
