CAIRO – 30 August 2026: Egypt’s Cabinet referred to a proposal by a public figure to transfer ownership of certain state-owned assets, including the Suez Canal, to the Central Bank of Egypt (CBE) in exchange for settling part of the government’s domestic debt.
The Cabinet affirms that the proposal being circulated represents solely a personal viewpoint and does not, in any way, constitute a policy, decision, or proposal adopted by the Egyptian government.
Prime Minister’s adviser Hassan Heikal called for settling the government’s domestic debt by transferring state assets, including the Suez Canal, to the Central Bank of Egypt (CBE). His call came after the Egyptian state reached a settlement to resolve the outstanding debt of the National Media Authority to the National Investment Bank, with the final value of the debt settlement reaching LE 88.3 billion after the cancellation of accumulated interest and late-payment penalties totaling LE 51.4 billion.
The Cabinet further clarifies that proposals involving the exchange of public assets for domestic debt have previously been studied and assessed by the relevant state authorities as part of a broader examination of various alternatives for managing public debt and reducing its servicing costs. The assessment concluded that this approach is not suitable and will not be adopted among the policies or mechanisms used by the government to manage public debt.
This conclusion is based on a range of economic, financial, and institutional considerations. Most importantly, the transfer of assets and liabilities between state entities does not, in itself, reduce the government’s overall debt burden. Effective public-debt management requires a comprehensive approach that takes into account the structure of debt, servicing costs, domestic liquidity, and the implications for both monetary and fiscal policy. It must also ensure the efficient management of public assets and the sustainable maximization of their economic returns.
The Cabinet categorically emphasized that the Suez Canal is not subject to any such proposal, and that the government has no intention of exchanging, mortgaging, or transferring ownership of the Canal in settlement of any debt. The Suez Canal is a strategic public utility of a special nature, directly linked to national security and Egyptian sovereignty. It also plays a pivotal role in the national economy and in global trade.
The Cabinet further affirmed that the recent settlement of the National Media Authority’s historical debts to the National Investment Bank represents a specific financial and institutional settlement undertaken in light of the particular legal and financial circumstances of that case and the nature of the assets and liabilities between the two parties. Accordingly, this settlement should not be interpreted or presented as a general model for managing the state’s public debt.
The government is pursuing an integrated approach to managing and reducing public debt. This approach focuses on improving public-finance indicators, achieving sustainable primary surpluses, increasing state revenues, enhancing the efficiency of public expenditure, extending debt maturities, and reducing debt-servicing costs.
At the same time, the government is working to maximize the returns generated by state-owned assets within the framework of the state-ownership policy, public offering programs, and public-private partnerships. These efforts are being implemented through clear and transparent frameworks designed to maximize returns for the Egyptian economy while safeguarding the rights of the state and future generations, the Cabinet added.
The Cabinet reaffirmed its commitment to providing space for experts and public figures to present diverse economic perspectives and analyses. Such views are respected as personal opinions; however, it is essential to distinguish them clearly from the official policies and positions of the Egyptian state, which are communicated through the official channels of the Cabinet and the relevant government authorities.