Egypt’sPrime Minister Mostafa Madbouly witnessed the signing of a tripartite framework agreement on Wednesday to settle an EGP 102.75bn historic debt owed to the National Investment Bank (NIB) by the General Organization for Industrial and Mining Projects.
The agreement was signed at the government headquarters in the New Administrative Capital by Minister of Finance Ahmed Kouchouk, Minister of Planning and Economic Development and Chairperson of NIB Ahmed Rostom, and Minister of Industry Khaled Hashem.
The framework agreement settles the total debt accumulated up to the end of August 2026. It includes exempting the authority from EGP 51bn in late payment penalties to ease its financial burden and enable the implementation of its development plans.
The settlement mechanism involves a cash payment covered by the Ministry of Finance, alongside the transfer of state-owned assets to NIB. This transfer aims to allow the bank to reuse and invest the assets, strengthening its financial position and restoring its role as a developmental arm.
Rostom stated that the achievements in the settlement portfolio follow directives from President Abdel Fattah El-Sisi to deal decisively with local debt challenges using innovative methods.
“These efforts in ending historical entanglements and debts owed to the National Investment Bank by ministries and public authorities—through innovative mechanisms such as swapping unused assets and partial exemptions—provide a practical and direct model for how a reduction in public sector debt is reflected,” Rostom said. He added that the measures alleviate financial pressures on struggling economic authorities and reform their financing structures.
Rostom noted that these efforts enhance the state budget structure by adjusting the bank’s financial position, shifting it from recording losses to generating profits by maximising the value of its financial and in-kind assets. This reduces reliance on monetary financing, frees up bank credit for the private sector, improves the state’s rating in financial flexibility and structural discipline among credit rating agencies, and improves sovereign financing terms.
With this agreement, the total value of complex debts—some dating back to the 1980s—that the ministry and NIB have successfully settled surpasses EGP 400bn.
Since last February, NIB has finalised financial settlements totalling EGP 298.8bn. These include EGP 133.5bn with the General Authority for Rehabilitation Projects and Agricultural Development, EGP 88.3bn with the National Media Authority, and EGP 62.2bn with the Holding Company for Water and Wastewater and its subsidiaries.
Additional settlements included EGP 9.8bn with the New Urban Communities Authority, EGP 306m with the Egyptian Agricultural Authority, and EGP 222.7m with the New Valley Governorate.
