Furthermore, the Ministry of Finance has also established an additional "ceiling" for the guarantees issued by the government
The Ministry of Finance has announced its "targeted strategy" to reduce the country's debt-to-GDP ratio to less than 80% by June 2027. Minister of Finance, Mohamed Maait, presented a comprehensive financial report to the House of Representatives, highlighting the government's commitment to implementing a maximum limit on the general debt ceiling for the first time in Egypt's history.
This step aligns with the recent amendments made to the Unified Public Finance Law, emphasizing a prudent approach towards managing the national debt.
The introduction of a defined debt ceiling serves as a safeguard against excessive borrowing, ensuring responsible fiscal practices are followed. Exceptions to this limit will only be made in emergency situations, requiring the approval of the president, the Cabinet, and the House of Representatives.
Furthermore, the Ministry of Finance has also established an additional "ceiling" for the guarantees issued by the government. This measure aims to enhance financial accountability and oversight, ensuring that guarantees are issued judiciously and within predefined limits.
To expedite the debt reduction process and extend the maturity of outstanding debt, the Ministry of Finance has committed to allocating the first surplus and fifty percent of the proceeds generated from the Initial Public Offering (IPO) program.
These funds will be channeled towards reducing the government's debt burden, providing a more stable and sustainable fiscal framework.
