Egypt’s total local and foreign debt repayment obligations are projected to jump around 30% to EGP 2.1 tn in the next fiscal year, up from an estimated EGP 1.6 tn for FY 2024-2025, according to a government document seen by EnterpriseAM.

The breakdown: The total repayment obligations include the amortization of non-equity securities worth EGP 768 bn, in addition to domestic loan repayments totaling EGP 832 bn. Meanwhile, foreign debt repayment is expected to decline to EGP 483 bn in FY 2025-26 from EGP 628 bn in the current fiscal year.

Lower foreign debt is part of a new debt strategy that is currently in the final review phase, a government source told EnterpriseAM. The strategy will focus on easing the country’s debt burden by significantly reducing reliance on external borrowing, diversifying the debt instruments issued, and offering longer maturities. The government plans to extend the average maturity of public debt to 4.5-5 years, compared to 1.8 years currently, the source said.

REMEMBER- The government aims to bring down the debt-to-GDP ratio to 80% by the end of June 2026 and to lower external debt by USD 1-2 bn annually.

The Finance Ministry also intends to issue new local debt instruments worth EGP 1.5 tn in the upcoming fiscal year, up 19.4% from EGP 1.2 tn in the current fiscal year, as part of the government's plan to raise spending on social welfare and narrow the budget deficit.

ICYMI- The government expects to issue nearly USD 4 bn in foreign debt during the next fiscal year under a USD 8 bn international debt issuance program.

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