The Egyptian Cabinet has issued a statement on its official Facebook page clarifying reports circulating on news websites and social media platforms regarding a proposal to transfer ownership of certain state-owned assets, including the Suez Canal, to the Central Bank of Egypt in exchange for settling part of the government&rsquo;s domestic debt. The Cabinet stressed that the proposal being circulated represents solely the personal view of the public figure who put it forward and does not in any way reflect a policy direction or proposal adopted by the Egyptian government. Previous Assessment of the Proposal The Cabinet explained that ideas involving the exchange of public assets for domestic debt had previously been studied and evaluated by relevant state authorities as part of an assessment of various alternatives for managing and reducing public debt and its servicing costs. The assessment concluded that this approach was not suitable for implementation, and, therefore, it was not included among the policies or mechanisms adopted by the government to manage public debt.
<iframe style="border: none; overflow: hidden;" src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2FEgyptianCabinet%2Fposts%2Fpfbid0hbxhyAQAGu6JwVSTniDF2KU9cK4dT2gVjU97ZvhSoAF2dbUWx4yFxCyqTNbWhCT1l&amp;show_text=false&amp;width=500" width="500" height="498" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe> Economic and Financial Considerations The Cabinet said the decision was based on several economic, financial, and institutional considerations. Chief among these is that transferring assets and liabilities between state entities does not, in itself, reduce the overall obligations of the state. Managing public debt requires a comprehensive assessment of the debt structure, debt-servicing costs, domestic liquidity, and their impact on monetary and fiscal policy. The government also emphasized the importance of maintaining the efficient management of public assets and maximizing their economic returns in a sustainable manner. Suez Canal Not Subject to Any Debt-Swap Proposal The Cabinet categorically stressed that the Suez Canal is not subject to any proposal of this kind. It said there are no government plans to exchange, mortgage, or transfer ownership of the Suez Canal in return for debt, emphasizing that the canal is a strategic public facility of a special nature, directly linked to Egypt&rsquo;s national security and sovereignty. The Cabinet also highlighted the canal&rsquo;s pivotal role in the national economy and global trade. National Media Authority Debt Settlement The Cabinet further clarified that the recent settlement of historical debts owed by the National Media Authority to the National Investment Bank represents a financial and institutional resolution of a specific case, based on the legal and financial circumstances of both parties and the nature of the assets and liabilities between them. It stressed that this case should not be used as a basis for comparison or considered a general model for managing the state&rsquo;s public debt. Government&rsquo;s Strategy to Reduce Public Debt According to the Cabinet, the government is pursuing an integrated approach to managing and reducing public debt. The strategy focuses on improving public finance indicators, achieving sustainable primary surpluses, increasing state revenues, improving the efficiency of public spending, extending debt maturities, and reducing debt-servicing costs. The government also aims to maximize returns from state-owned assets through the State Ownership Policy, public offering programs, and partnerships with the private sector. These efforts, the Cabinet said, are being carried out within clear and transparent frameworks designed to deliver the highest possible return to the Egyptian economy while protecting the rights of the state and future generations. Cabinet Distinguishes Between Personal Views and Official Policies The Cabinet reaffirmed its commitment to allowing experts and public figures to present different economic views and proposals, emphasizing that such ideas represent the opinions of their respective proponents. At the same time, it stressed the importance of distinguishing these personal views from the official policies and positions of the Egyptian state, which are announced through the official channels of the Cabinet and the relevant government authorities. Photo Credit: The Egyptian Cabinet&rsquo;s official page

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