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Deputy Fouad demands government debt details
Egypt has faced financial challenges related to rising public debt and borrowing costs. Deputy House of Representatives member Mohammed Fouad pointed out that the public debt is estimated at 91.1% of the GDP for the fiscal year 2025/2026, with borrowing needs amounting to about 42% of the GDP. Additionally, the average return on treasury bonds and bills increased to 24.5% in the second quarter of 2026, while the average maturity of new issuances remained at 1.1 years, reflecting pressures on debt management. He explained that external debt has risen to approximately $164 billion, with government foreign currency loans reaching $56.2 billion by the end of May 2026, increasing the risks posed by exchange rate fluctuations in repaying these obligations—especially as the share of non-residents holding debt instruments increased to around 42-43%. Parliament calls for transparency regarding the reasons behind the rise in these loans and a thorough analysis of debt sustainability, emphasizing the extension of repayment periods and measures to reduce currency risk, all aimed at improving debt management and alleviating the financial burden on the budget and citizens.
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