Egypt denies plans to swap state assets for debt, rules out Suez Canal
Egypt’s government has dismissed reports of proposals to swap state assets, including the Suez Canal, for domestic debt, stressing the canal is not up for negotiation.
Key Takeaways
AIThe Egyptian government has denied reports circulating about proposals to swap certain state assets, including the Suez Canal, for domestic debt. In an official statement, the Cabinet clarified that such suggestions reflect only the personal opinions of their proponents and do not represent government policy or direction.
The Cabinet noted that proposals to exchange public assets for domestic debt had previously been studied and evaluated by the relevant authorities, concluding they were unsuitable and have not been adopted as part of public debt management policies.
The Cabinet explained that transferring assets and debts between state entities does not reduce overall obligations, and that addressing public debt requires a comprehensive approach to debt structures, servicing costs, and their impact on monetary and fiscal policies.
The Cabinet stressed that the Suez Canal is not subject to any such proposals, emphasizing its status as a strategic facility tied to Egypt’s national security and sovereignty, and highlighting its central role in the national economy and global trade.
In the same context, the Cabinet noted that the settlement of the National Media Authority’s debts to the National Investment Bank was a specific solution based on its unique legal and financial circumstances, and should not be considered a general model for public debt management.
The Egyptian government reaffirmed its commitment to a comprehensive approach to public debt management, including improving financial indicators, achieving primary surpluses, increasing revenues, enhancing spending efficiency, extending debt maturities, and reducing costs, while maximizing returns from public assets under clear and transparent policies.
The Cabinet concluded by emphasizing the importance of allowing economic experts and public figures to present their views, while distinguishing these opinions from official policies, which are announced through the appropriate government channels.