Finance Minister Ahmed Kouchouk Saturday 11/4/2026 announced that Egypt will continue issuing “Citizen Bonds” and sukuk, along with introducing new financial instruments aimed at attracting a broader base of savers and investors.
Addressing a press conference to unveil details of the 2026-2027 state budget, the minister said the government is working to diversify both domestic and international financing sources and expand access to concessional financing in order to reduce borrowing costs.
Kouchouk expressed confidence in the country’s fiscal outlook, emphasizing that the coming phase will witness a “strong and tangible improvement” in debt indicators, including debt levels, servicing costs, and maturities.
“We are working diligently and in a balanced manner to improve government debt metrics,” he said, reassuring citizens and investors.
He added that Egypt has adopted a comprehensive and integrated debt management strategy implemented across all state institutions.
The government is targeting a reduction in the budget sector debt-to-GDP ratio to 78% by June 2027, alongside cutting external debt by approximately $2 billion annually, Kouchouk said.
The strategy also aims to reduce the government’s financing needs to around 10% of GDP over the medium term, as well as lowering debt servicing costs to 35% of total budget expenditures, the minister said.
Kouchouk further highlighted that Egypt is targeting an 18% reduction in budget sector debt between 2023 and June 2027, against an average 10% increase in debt ratios across emerging economies during the same period.
MENA
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