Saturday 03/January/2026 – 11:12 PM
Presentation of Dr. Mohamed Fouad, economic expert, andMember of the Political Bureau of the Justice Party, Detailed view about Debt crisis General in Egypt, stressing that debt includes two main parts: domestic and foreign debt.
Fouad: The responsibility for repaying the debt falls mainly on the government
Fouad explained during television statements that any attempt to zero the debt through exceptional or unconventional solutions, such as exchanging local debt for state assets, faces direct risks to local savings and may lead to increased inflation, because it requires providing new liquidity or replacing assets with cash value, which puts pressure on the financial markets and affects the interest paid to depositors.
Fouad pointed out that about 87% of domestic debt includes treasury bills, which are financial instruments that the government obtains from banks in exchange for paying interest. These banks, in turn, depend on citizens’ deposits. As for external debt, it includes international bonds and debts to international institutions, which cannot be exchanged for assets due to international legal restrictions and specific payment obligations.
Fouad stressed that magic or quick solutions are not applicable, and that any sustainable debt reduction requires stable financial management and balanced policies away from exceptional adventures.
He added that the government is relying on the national narrative plan to gradually reduce debt, from 86% of GDP currently to about 75% over five years, a plan that takes into account the balance between the economic interest of the citizen and the stability of public finances.
Fouad also stressed that the responsibility for repaying the debt falls mainly on the government, taking into account the direct impact on the citizen, especially with regard to public financing and basic services, noting that any innovative or unconventional solutions must be within carefully studied frameworks to avoid any negative effects on the economy or the citizen.
