Egypt Finance Ministry Vows Debt Service Reductions After Moody’s Upgrade

Egypt's finance ministry has announced plans to accelerate reductions in debt service costs following Moody's decision to upgrade the country's credit rating to 'B3' with a positive outlook.

Egypt’s finance ministry has announced a renewed focus on reducing high debt service costs at a faster pace as part of further structural reforms. The announcement follows a decision by Moody’s to upgrade the country’s credit rating to “B3” with a positive outlook.

In an official statement addressing the upgrade, the ministry acknowledged the ongoing challenge of high debt servicing. It attributed the improved rating to economic and fiscal reforms that have stabilized public finances and accelerated economic activity. The positive outlook reflects expectations of stronger economic growth driven by continued reforms, fiscal discipline, and support for production and exports.

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The ministry reported that strong economic growth helped lower government debt to 81.9% of gross domestic product in June 2026, while net international reserves rose to $57 billion in September. Tax revenues also increased to 13% of GDP, representing a 1.6% rise over two years without imposing additional burdens.

To maintain this growth trajectory and elevate productivity, the government stated it will continue developing the business environment, simplifying procedures, and enhancing competition to boost private investments. Officials emphasized that these facilities will strengthen private sector confidence and secure stable growth rates, noting that the economy has become more resilient to shocks.

The ministry affirmed that balanced fiscal policies and ongoing reforms are designed to maintain financial stability. These measures aim to create additional fiscal space to increase targeted spending on health, education, and social protection.

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