Arab Finance: The Egyptian Cabinet commented on a proposal by a public figure to transfer ownership of state-owned assets, including the Suez Canal, to the Central Bank of Egypt (CBE) in exchange for settling part of the government’s domestic debt.

It stressed that the suggestion represents a personal viewpoint and does not, in any way, reflect a policy adopted by the Egyptian government.

Such ideas have previously been studied and evaluated by the relevant state authorities as part of an assessment of various alternatives for managing and reducing public debt and its servicing costs, the statement added. However, the study concluded that these approaches would not be suitable for implementation to manage public debt.

The Cabinet affirmed that these measures are based on several economic, financial, and institutional considerations. It elaborated that transferring assets and liabilities between state entities does not, in itself, reduce the government’s overall obligations.

Settling public debt requires a comprehensive assessment of the debt structure, servicing costs, domestic liquidity, and their implications for monetary and fiscal policy, while maintaining the efficient management of public assets and maximizing their economic returns on a sustainable basis.

Hence, the Cabinet said the Suez Canal is not subject to such a proposal and affirmed that the government has no intention of exchanging, pledging, or transferring ownership of the canal in return for debt.

Meanwhile, the Cabinet addressed the recent settlement of the National Media Authority’s (Maspero) liabilities to the National Investment Bank (NIB), indicating that it represents an institutional solution to a specific case, taking into account its legal and financial circumstances and the nature of the assets and liabilities between the two entities.