The Egyptian government plans to borrow 1,983 EGP from the local economy in the first quarter of 2025 to pay off past debts and close the state budget deficit.
According to the plan announced by the Ministry of Finance, 48 tenders worth 1,780 trillion Egyptian pounds and 40 bonds worth 203 billion Egyptian pounds were prepared from January 1 to March 31.
The Bank of Egypt will also issue bonds and notes worth 612 billion EGP in January, followed by 641 billion EGP in February and 730 billion EGP in March.
The planned financing price for the tender will include LE330 billion for a 91-day tenor, LE470 billion for an 182-day tenor, LE470 billion for a 273-day tenor and LE510 billion for a 364-date tenor.
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In addition, the government will issue several bonds, including EGP 39 billion in two-year bonds, EGP 116 billion in three-year bonds, EGP 14 billion in three-year floating-price contracts and EGP 25 billion in five-year contracts.
Bonds and EGP 9 billion in five-year loans. The banking sector is also a major investor in the financial system and government revenue, which is often used to finance the country’s fiscal deficit.
Debt instruments are issued by 15 banks that participate in the process of primary investors, and then some of these instruments are sold on the secondary market to households and foreign countries and companies.
Earlier, Deputy Finance Minister Ahmed Kucuk said that the government is developing a plan to halve public debt, which will be announced in the first quarter of 2025. Kujok also said that the government aims to reduce the debt-to-GDP ratio, which rose to 85% in the current fiscal year after falling from 96% in June 2023 to 89.6% in June 2024.
As part of the three-year plan (2024-2027), the government also announced plans to reform its fiscal and debt management strategies, aiming to reduce overall debt and improve fiscal management. The revised plan is intended to reduce financing needs and improve Egypt’s fiscal stability.
