Egypt, local creditors in talks to extend debt maturities
Updated 4/18/2024 9:06:00 AM
Arab Finance: Egypt is trying to postpone the maturity of some of its domestic debt dues, in an effort to further alleviate burdens on its finances after securing over $50 billion in international aid this year, Minister of Finance Mohamed Maait told Bloomberg.
Maait said that discussions with public entities such as the Central Bank of Egypt (CBE), pension funds, and the main state health insurer are centered on extending the maturities of domestic obligations owed to these entities.
The objective is to trim Egypt’s gross financing requirements for the coming years, the minister added.
He highlighted that the talks reflect pressures on the government which spends around half of its revenues on interest payments.
He noted that debt plans should assist the finance ministry in reaching its target of extending the average maturity of total debt to between 4.5 and five years by June 2028, compared with 3.3 years at the end of fiscal year (FY) 2023/2024, Maait said.
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