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مصراوي
Heikal's Grand Bargain Debate
Hassan Heikal revived a proposal to restructure part of Egypt’s domestic debt by swapping public assets for debt, or issuing low-interest bonds and sukuk to be subscribed to by the central bank or commercial banks, with the aim of reducing debt-servicing costs. He noted that interest payments amounted to about EGP 2.8 trillion out of revenues of EGP 3.2 trillion, and said that selling assets worth $10 billion would, by his estimate, cover only around two months’ worth of interest. Economists warned that transferring debt does not eliminate it, and that using income-generating assets could deprive the state of future revenue. They also cautioned that compensating banks in cash could fuel inflation or shift losses onto depositors and investors. They called for clear details and mechanisms to assess the proposal’s viability and its effects.
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