Egypt was able to benefit from the debt swap programmes that it set up with Italy and Germany, according to the country’s Deputy Minister of Planning Ahmed Kamali.
Kamali added that debt swap is an effective measure to reduce debt burden on countries, whilst at the same time allowing them to achieve the UN’s sustainable development goals (SDGs).
He said that the swap process can be converted into grants or investments, as the Egyptian state prefers investments for its contribution to influencing the investment.
Kamali’s remarks came during his participation as a keynote speaker at the United Nations Economic and Social Commission for Western Asia (ESCWA) meeting on the “Debt Swap Initiative for Climate Finance and the Sustainable Development Goals in the Arab Region”.
The Deputy Minister referred to the importance of the debt swap initiative, especially as the global financial gap has increased due to crisis caused by the novel coronavirus (COVID-19) pandemic.
Developing and emerging economies have been particularly badly hit by the global pandemic. Kamali noted that Egypt has formed a public debt management committee and organised external borrowing, to consider foreign loan applications submitted and monitor the debt situation.
