Arab Finance: Egypt is targeting a reduction in its debt-to-GDP ratio to 78% by June 2027, alongside cutting external debt by around $2 billion annually, as part of a broader strategy to improve fiscal sustainability, Minister of Finance, Ahmed Kouchouk, announced.

He said the coming period will witness a strong and significant improvement in debt indicators, including servicing costs and maturities, as the government implements a comprehensive debt management strategy across all state entities.

The minister added that the government is also working to reduce the financing needs of the budget by about 10% of GDP over the medium term, while lowering the debt service bill to around 35% of total expenditures.

Kouchouk said any exceptional revenues would be directed toward reducing the overall size of government debt and its ratio to GDP, as part of efforts to strengthen fiscal discipline.

He noted that the government is diversifying its financing sources locally and internationally, while expanding access to concessional financing to ease funding pressures. Authorities will continue issuing citizen bonds and sukuk, while introducing new financial instruments aimed at attracting a broader base of savers.