Egypt is expected to finalize another debt swap with its European partners before the end of 2025, according to Planning Minister Rania al-Mashat, who stated that the transaction will involve swapping expensive debt for debt at lower costs, with the savings earmarked for specific projects or purposes.
This deal will be another chapter in the approximately $1 billion worth of swaps the country has undertaken with bilateral partners such as Germany and Italy since the 1990s.
Al-Mashat highlighted the benefits of debt swaps, stating they are a way to do liability management, create more fiscal space, and show that collectively, national goals are aligned with international goals.
She also expressed optimism about the Suez Canal’s contribution to economic growth turning positive again from mid-2026 onwards, after being negative in recent years due to attacks on shipping by Yemen’s Houthis, and noted that the government hopes the canal’s contribution to growth will be at least zero, not negative, by June next year.
