These agreements contribute to securing additional funding
for priority projects, easing the burden of external debt, and maintaining the
growth of foreign currency reserves. This, in turn, supports the stability of
the Egyptian pound against the US dollar.
El-Gamal emphasized that the debt swap mechanism is an
effective tool for enhancing available financial resources for development
projects. It allows part of Egypt’s debts to partner countries to be converted
into direct investments in national initiatives.
He explained that this approach not only helps relieve debt
pressure but also advances the achievement of the Sustainable Development Goals
(SDGs), particularly Goal 17, which focuses on building strong global
partnerships for development.
He noted that the government is currently expanding these
initiatives through new debt-for-investment agreements in the areas of green
transition and sustainable development. Egypt has already signed deals with
friendly countries worth more than $900 million.
He added that data from the Central Bank of Egypt showed a
decline in the country’s external debt by about $111 million during the
2024/2025 fiscal year. The debt stood at $155.09 billion by the end of December
2024, compared to $155.20 billion at the end of September of the same year.
Egypt and China recently signed the framework agreement for
the first phase of a debt swap program aimed at implementing development
projects. The step reflects the deepening of bilateral relations and the
broadening of economic cooperation between the two countries. The agreement was
signed during the historic visit of Chinese Premier Li Qiang to Cairo, as part
of a package of five cooperation documents between both sides.
El-Gamal stressed that debt swaps are a strategic mechanism that transforms Egypt’s financial obligations into direct foreign investment. He described them as a key driver of economic growth and a means to ease financial pressure on the state.=