Finance ministry in Egypt vows to cut debt service costs following Moody’s ‘B3’ rating

Reducing high debt service costs at a faster pace is the focus of further structural reforms, the Egyptian finance ministry announced following a decision by Moody’s to upgrade the country’s credit rating to “B3” with a positive outlook.

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

The ministry noted 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 bn in September. Tax revenues have increased to 13% of GDP, representing a 1.6% rise over two years without imposing additional burdens.

To maintain the 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 emphasised that driving these facilities will strengthen private sector confidence and secure high, 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 while creating additional fiscal space to increase targeted spending on health, education, and social protection.