Egypt’s external debt for budgetary entities declines by $3B in FY2023/2024

The external debt of Egypt's budgetary entities declined by approximately $3 billion during FY 2023/2024, Minister of Finance Ahmed Kouchouk said during his meeting with members of the Coordination’s Committee of Party’s Youth Leaders and Politicians in Egypt’s Parliament.

Kouchouk emphasized that fiscal and tax policies reflect a more comprehensive approach to economic reform, focused on stimulating investment and achieving sustainable growth.

The Minister of Finance announced that a series of facilitation packages for customs and real estate taxes will be introduced in the near future to ease processes for investors and citizens.

Additionally, a comprehensive tax policy document extending until 2030 will be released in the first quarter of the upcoming year to strengthen trust with financial partners and taxpayers.

The minister highlighted that the treasury will cover half the costs for financing the construction of 10,000 hotel rooms over the next two years as part of an initiative to support the tourism sector.

Kouchouk announced that the external debt of budgetary entities fell by $1 billion in the first four months of the fiscal year, reaching $78 billion by the end of October 2023, compared to $79 billion in June 2024.

To alleviate debt burdens, the government plans to allocate 50% of the revenues from the privatization program to debt repayment.

This program is a key element of Egypt’s strategy to enhance non-tax revenues, targeting EGP 600 billion by the end of the current fiscal year.

Currently, government debt accounts for 52.4% of Egypt's total external debt of $152.9 billion. The Ministry of Finance aims to reduce public debt to 85% of GDP by the end of the fiscal year, aligning with broader economic reform goals.

To support the tourism sector, the government will fund 50% of the costs to establish 10,000 hotel rooms over two years.