The Egyptian Cabinet has categorically denied reports of any government proposal to transfer ownership of the Suez Canal or other state-owned assets to the Central Bank of Egypt (CBE) in exchange for settling part of the government’s domestic debt.
Such a proposal reflects the personal view of its author and does not represent any government policy or initiative, the Cabinet said in a statement on Sunday.
The statement followed the circulation of the proposal by several news websites and social media platforms after a public figure suggested that certain state-owned assets, including the Suez Canal, could be transferred to the Central Bank in return for settling part of the government’s domestic liabilities.
The Cabinet said similar proposals had previously been examined by the relevant state authorities as part of a broader review of options for managing and reducing public debt and its servicing costs.
However, the assessment concluded that the proposed approach was unsuitable and it was therefore not incorporated into the government’s policies or mechanisms for managing public debt.
The Cabinet said its position was based on a number of economic, financial and institutional considerations.
It noted that transferring assets and liabilities between state entities does not, in itself, reduce the state’s overall obligations. Public debt, it said, must instead be addressed through a comprehensive assessment of its structure and servicing costs.
Such an assessment must also take into account domestic liquidity and its impact on monetary and fiscal policy. At the same time, state-owned assets must be managed efficiently to maximise their economic returns on a sustainable basis.
The Cabinet stressed that the Suez Canal is not subject to any proposal of this kind and that the government has no intention of exchanging, pledging or transferring ownership of the waterway in return for debt settlement.
The Suez Canal is a strategic public facility with a special status, the Cabinet said, noting that it is directly linked to Egypt’s national security and sovereignty and plays a vital role in the national economy and global trade.
The Cabinet also clarified the circumstances surrounding the recent settlement of historical debts owed by the National Media Authority to the National Investment Bank.
It said the settlement was a financial and institutional solution to a specific case, based on the legal and financial circumstances of the two entities, as well as the nature of their respective assets and liabilities.
The Cabinet stressed that the settlement should not be regarded as a general model for managing the state’s public debt.
The government’s strategy for managing and reducing public debt is based on an integrated approach that includes improving public finance indicators and achieving sustainable primary surpluses.
The strategy also focuses on increasing state revenues, improving the efficiency of public spending, extending debt maturities and reducing debt-servicing costs.
In addition, the government is seeking to maximise returns from state-owned assets under the State Ownership Policy, including through asset offerings and partnerships with the private sector.
Such measures are being implemented within clear and transparent frameworks aimed at maximising returns for the Egyptian economy while safeguarding the rights of the state and future generations.
The Cabinet reaffirmed its commitment to allowing experts and public figures to put forward different economic views and proposals. However, it stressed that such views must be clearly distinguished from the official policies and positions of the state.
