Egypt’s Cabinet denied on Sunday 30 August circulating claims that the government plans to transfer ownership of the Suez Canal to the Central Bank of Egypt as a way to settle part of the state’s domestic debt.
The denial came after some online reports had proposed swapping the canal’s ownership for debt relief which then prompted clarification from the Egyptian government.
The Cabinet added that the idea of exchanging state assets for domestic debt had previously been studied and evaluated by authorities as part of broader reviews of options to manage and reduce public debt and the costs of servicing it.
Egypt’s Cabinet also emphasized that transferring assets and debts between government entities does not, by itself, reduce the state’s overall liabilities.
It noted that managing public debt requires a well-planned approach that considers the structure of debt, the cost of servicing, domestic liquidity, and the implications for both monetary and fiscal policy.
As a result, the government reiterated its position that it has no intention of swapping, mortgaging, or transferring the canal’s ownership under any circumstances.
The statement further described the Suez Canal as a strategic public utility directly linked to national security and Egyptian sovereignty, while also playing a central role in the national economy and global trade.
The Cabinet said Egypt’s overall strategy for reducing public debt relies on improving public finance indicators, achieving sustainable primary surpluses, increasing state revenues, enhancing the efficiency of public spending, extending debt maturities, lowering servicing costs, and maximizing returns from state-owned assets.
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