Cairo: Egypt's government announced that it has no intention of transferring ownership of state assets, including the Suez Canal, to the central bank in exchange for settling part of its domestic debt. The Cabinet clarified that reports on such a proposal are based on the personal views of a public figure and do not reflect official government policy.
According to State Information Service Egypt, the government had previously evaluated the idea of exchanging public assets for domestic debt as part of a broader assessment of options to manage and reduce public debt and its servicing costs. However, the Cabinet concluded that this approach was not suitable. The statement emphasized that merely transferring assets and liabilities between state entities does not decrease the government's overall obligations. It stressed the importance of considering the structure of public debt, servicing costs, domestic liquidity, and the impact on monetary and fiscal policy.
The Cabinet further clarified that the Suez Canal is not included in any such proposals. There are no plans to exchange, pledge, or transfer ownership of the canal in return for debt. The canal is a vital public facility with significant importance to Egypt's national security and sovereignty, playing a crucial role in both the national economy and global trade.
The government also addressed the recent settlement of historical debts owed by the National Media Authority to the National Investment Bank. The Cabinet explained that this was a specific financial and institutional arrangement based on legal and financial circumstances, as well as the assets and liabilities involved. It cautioned against viewing this arrangement as a general model for managing the country's public debt.
In its statement, the government outlined its broader strategy to reduce public debt by improving public finances, achieving sustainable primary surpluses, increasing state revenues, enhancing spending efficiency, extending debt maturities, and lowering debt-servicing costs. The strategy also aims to maximize returns from state-owned assets through state ownership policies, asset offerings, and partnerships with the private sector. These efforts are designed to maximize economic returns while safeguarding the rights of the state and future generations.
The Cabinet welcomed economic experts and public figures to present different views and proposals but emphasized that personal opinions should not be mistaken for official government policies. Official positions are communicated through government channels.