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Arab Finance: Reducing public and external debt, along with easing the burden of debt servicing, remains a primary objective for the Egyptian government during the current phase, Prime Minister Mostafa Madbouly said during the meeting of the External Debt Management and Borrowing Regulation Committee on December 16th.
Madbouly stressed that the government is pursuing a comprehensive strategy aimed at strengthening fiscal discipline and improving the structure of public debt.
The approach, he noted, is designed to free up additional resources for key service sectors while maintaining prudent borrowing levels.
In addition, the prime minister reviewed the government’s framework for external debt governance and borrowing regulation, which sets clear parameters to ensure that external debt levels remain within safe limits relative to gross domestic product.
The framework also includes efforts to restructure external debt through debt-for-investment and debt-for-development swap agreements, building on arrangements already concluded with several Arab, European, and Asian countries.
The discussions also covered the role of the national structural reform program in supporting macroeconomic stability and enhancing the sustainability of external debt.
The program aims to drive economic growth at a pace that outstrips debt accumulation, while strengthening the country’s capacity to meet its external obligations.
