{"id":687777,"date":"2026-03-12T00:00:00","date_gmt":"2026-03-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?p=687777"},"modified":"2026-03-12T12:47:12","modified_gmt":"2026-03-12T12:47:12","slug":"govt-targets-reducing-financing-gap-to-9-by-fy-2028-29-under-new-public-debt-strategy","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/12\/govt-targets-reducing-financing-gap-to-9-by-fy-2028-29-under-new-public-debt-strategy\/","title":{"rendered":"Gov\u2019t targets reducing financing gap to 9% by FY 2028\/29 under new public debt strategy"},"content":{"rendered":"

Good afternoon, friends, and congratulations on making it to the weekend.<\/strong> It\u2019s been a packed week in the press, and as usual, Thursdays are no exception \u2014 let\u2019s dive in. Also in today\u2019s issue: We speak to Egyptians currently residing in the Gulf, take a look at one of Ramadan\u2019s most controversial series, and more. <\/p>\n

PSA-<\/strong> The Eid break is officially only a week away, with Prime Minister Mostafa Madbouly marking Thursday, 19 March to Monday, 23 March as a paid public holiday for government workers. We\u2019re on the lookout for similar statements from the Labor Ministry, the bourse, and the CBE. <\/p>\n

\ud83c\udf19 So, when do we eat?<\/strong> Maghrib prayers are at 6:01pm in the capital, and you\u2019ll have until 4:41am tomorrow to hydrate and caffeinate ahead of fajr.<\/p>\n

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THE BIG STORY TODAY-<\/p>\n

\ud83d\udccd Egypt is aiming to reduce its gross financing needs to between 9-11% of GDP and bring the debt-to-GDP ratio down to a sustainable 71-73% by the end of FY 2028\/29<\/strong>, according to the government\u2019s new 2026-2029 medium-term debt management strategy, a document seen exclusively by EnterpriseAM.<\/p>\n

The roadmap aims to resolve a critical fiscal bottleneck where interest payments currently devour 70-80% of tax revenues<\/strong>, with the goal of reducing the annual debt service bill to 8.6% of GDP from 11% in FY 2024\/25. To achieve this, the government is doubling down on \u201cprudent borrowing,\u201d targeting a 4% primary surplus in FY 2025\/26, and executing a structural shift to increase EGP-denominated debt to 80% of public debt by the end of the strategy period to insulate the budget from FX volatility.<\/p>\n

The strategy also prioritizes extending the average debt maturity to five years<\/strong>, activating the secondary market to reduce reliance on local banks, and leveraging Egypt\u2019s significantly improved credit profile \u2014 with five-year CDS plummeting to 299 bps \u2014 to attract a broader base of retail and ESG-focused institutional investors.<\/p>\n

^^ We\u2019ll have more on this story in Sunday\u2019s edition of EnterpriseAM.<\/p>\n

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THE BIG STORY ABROAD-<\/p>\n

\ud83c\udf10 It\u2019s another busy afternoon in the press, with the latest developments in the <\/strong>region leading the front pages.<\/strong> Three tankers were hit in the Arabian Gulf, and vessels near Iraqi waters were reportedly seen burning, sending oil prices soaring. Brent crude jumped over USD 100 per barrel this morning. Iran warned oil prices could reach USD 200 per barrel if the disruption \u2014 which the International Energy Agency is calling the biggest in history \u2014 continues. Brent crude was trading near USD 97 per barrel as of the time of publication.<\/p>\n

^^Read more on: Bloomberg<\/a>, Reuters<\/a>, and CNBC here<\/a> and here<\/a>.<\/p>\n

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