Arab Finance: Prime Minister Mostafa Madbouly witnessed the signing of two framework agreements to settle historical financial liabilities worth EGP 196 billion, involving the National Investment Bank (NIB) and several state entities, some dating back to the 1980s, according to a statement.
This comes under directives from President Abdel Fattah El-Sisi to achieve financial balance among state entities and ease the burden of accumulated debt on the state's general budget.
Under the first framework agreement, signed by Minister of Finance Ahmed Kouchouk, Minister of Housing Randa El-Menshawy, and Minister of Planning and Economic Development Ahmed Rostom, the government will settle debts owed to the NIB by the subsidiaries of the Holding Company for Water and Wastewater (HCWW) amounting to EGP 62.2 billion as of the end of December 2025.
The second deal covers the settlement of EGP 133.5 billion in liabilities owed to the NIB by the General Authority for Reconstruction Projects and Agricultural Development (GARPAD) through the end of December 2025, in addition to EGP 306 million owed by the Ministry of Agriculture and Land Reclamation through the end of March 2025. The signing parties included Kouchouk, Rostom, and Minister of Agriculture Alaa Farouk.
Madbouly highlighted the state’s ongoing efforts to finalize outstanding settlement agreements and resolve long-standing financial disputes among government entities and institutions, which will help to secure greater opportunities to develop projects and improve public services across various sectors.
For his part, Kouchouk emphasized that this step reflects the optimal utilization of state assets through well-developed financial structures, enhancing the performance of national companies and improving operational efficiency in line with the sustainable development goals.
Meanwhile, Farouk highlighted the role of the settlements in advancing agricultural development, strengthening food security, increasing production, expanding agro-industrial activities, and boosting exports.
Finally, Rostom asserted that these major agreements will drive macroeconomic stability and maximize the utilization of state assets and resources, while fostering confidence in Egypt’s business and investment environment.
This followed the country’s settlements of all outstanding arrears owed to oil and gas investment partners, cutting them to zero after dues had reached approximately $6.1 billion in June 2024.
