Egypt’s IMF loan, government IPO plans, and debt took center stage in Finance Minister Ahmed Kouchouk’s interview with Lamees El Hadidi on Kelma Akhira, which dominated last night’s talk show discussions (watch, runtime 49:40).

Egypt is poised to secure a USD 1.2 bn disbursement from its USD 8 bn IMF loan later this month, according to Kouchouk, who dismissed speculation that Cairo had sought to increase the program’s size. The announcement follows a staff-level agreement with the IMF in late December, clearing the path for the long-delayed fourth review of the loan program and the release of the next tranche.

The government is also looking to raise USD 3 bn from the global debt markets in the first half of the year, with Kouhouk explaining to El Hadidi that “we will return to the global debt market with various issuances that appeal to different types of investors, but with relatively small volumes.”

Privatization will also help raise funds this year, with three or four companies set to be offered up before the end of the fiscal year at the end of June, the finance minister said. The companies — including military-owned firms — will be offered up either to strategic investors or on the EGX through an IPO. Kouchouk’s comments follow Prime Minister Moustafa Madbouly announcement last month that 2025 will see the government offer up stakes in ten companies.

But Kouchouk was keen to express his concern over Egypt’s USD 152 bn of external debt, pledging to reduce it by USD 2 bn annually to ensure borrowing remains below repayments. Some USD 16 bn in external debt repayments are due this year, 80% of which will be covered by real and additional resources, with the remaining 20% coming from concessional loans from international development institutions. The government is targeting a public debt-to-GDP ratio of around 85% by the end of the current fiscal year.

The minister also teased a new initiative to convert cars to run on natural gas that will be announced next week, which will see the Finance Ministry cover 70% of the roughly EGP 17-17.5k conversion cost.

Some corners of the international press also picked up Kouchouk’s comments: Reuters.

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