Egypt has reached a framework agreement to settle LE102.75 billion in historic debt owed by the Industrial and Mining Projects Authority (IMPA) to the National Investment Bank (NIB), one of the largest outstanding government debts.
Prime Minister Mostafa Madbouly witnessed the signing ceremony on Wednesday at the government headquarters in the New Capital.
Finance Minister Ahmed Kouchouk, Planning and Economic Development Minister and NIB Chairman Ahmed Rostom, and Industry Minister Khaled Hashem signed the agreement.
The settlement covers the authority’s total outstanding debt through the end of August 2026. It also includes a waiver of LE51 billion in late-payment penalties, easing the authority’s financial burden and supporting its development plans.
Under the agreement, part of the debt will be settled in cash by the Finance Ministry, while state-owned assets will be transferred to the NIB. The bank will be able to redeploy and invest these assets to strengthen its financial position and restore its role as a development arm of the state.
Rostom said that the move would help reduce public-sector debt, ease financial pressures on struggling economic entities and support the restructuring of their financing positions.
Rostom described the agreement as a turning point in efforts to resolve long-standing financial interconnections between state entities.
With the latest settlement, the total value of debts resolved and agreements signed by the ministry and the NIB has exceeded LE400 billion, including debts dating back to the 1980s.
He said resolving the outstanding debts would pave the way for the NIB’s restructuring, enabling it to manage its assets more efficiently and generate direct returns for the state treasury.
Since February, the NIB has completed settlements worth LE298.8 billion with several government entities.
