Cairo – February 11, 2025: The Egyptian government plans to introduce new initiatives aimed at exchanging debt for investments in sustainable development and green transformation, as announced in a statement from the Ministry of Finance today.
Finance Minister Ahmed Kouchouk highlighted Egypt's commitment to strengthening international efforts in boosting concessional development financing and expanding financial space for developing nations.
He made these remarks during his participation in the preparatory meetings for the Fourth International Conference on Financing for Development in New York.
Kouchouk highlighted the importance of boosting the private sector's role in financing development by creating an attractive investment environment. He also called on multilateral development banks to offer more financial facilities to both member countries and the private sector, especially given the challenges low- and middle-income countries face due to the burden of debt.
Debt burdens undermine the ability of these nations to respond to crises and fund development projects, said Kouchouk.
The FinMin reaffirmed Egypt’s commitment to working alongside international partners to achieve global economic goals. He stressed the necessity of adopting innovative mechanisms and tools to reduce debt burdens, which will help create additional financial space to support sustainable and inclusive growth.
“Our aim is to establish a more comprehensive and flexible global mechanism to address the debt issue, especially for low- and middle-income countries,” Kouchouk said.
Kouchouk further underscored the need to explore financing options in local currencies to reduce reliance on external debt. With global economic pressures widening financing gaps, he warned that these challenges are impeding the progress of sustainable development.
The Minister also called for increased global collaboration to fund climate change adaptation programs. He expressed hope that international rating agencies would adopt a fairer approach in assessing the conditions and challenges faced by developing nations.
Speaking during a separate meeting with Cristina Duarte, the United Nations Secretary-General’s Special Adviser on Africa, on the sidelines of the preparatory meetings, Kouchouk noted that debt service burdens in African countries are increasing, financing gaps are widening, and development pathways are faltering.
Kouchouk addressed the growing debt crisis in Africa, stating that resolving Africa’s debt challenges would pave the way for real reform in the global financial system and significantly improve continental development indicators.
He expressed Egypt’s hope for strong, impactful steps from international institutions to ensure Africa receives concessional development financing without adding further pressure to its debt situation.
He stressed the need for joint efforts to tackle these challenges, which are affecting the lives of millions of Africans.
He called on countries, financial institutions, and the private sector to join the “Debt Coalition for Sustainable Development Initiative.” The initiative aims to address the increasing debt burdens and expand the financial capacity of African nations to fund development projects.
Kouchouk also emphasized the importance of adopting a comprehensive strategy to improve government debt indicators and increase spending on health, education, and social protection.
He highlighted that debt-for-investment swaps would enhance economic stability in African countries, especially amidst rising global risks.
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