What is debt swap?
A debt swap is a deal between two countries or companies by which they redirect the debt to finance a project or an initiative.
Egypt has a debt swap agreement with Germany where the 2 countries discuss the priorities of each phase of debt swap with the goal of mutual development and reducing Egypt’s foreign debt.
Egypt and Germany are trading partners whose cooperation is worth almost a billion dollars across different sectors.
What happened in phase 1 and phase 2?
Phase 1 of the swap was worth 70 million euros and included projects in education, sanitation, clean energy, clean water and boosting employment rates. Phase 2 stood at 90 million euros and covered similar projects.
Phase 3 will be at 80 million euros and will focus on education, employability and training in vocational and technical skills.
Who are the parties involved?
The ministry of International Cooperation under the leadership of Minister Rania Al-Mashat as well as Director General of the German Federal Ministry for Economic Cooperation and Development Claudia Farning discussed the developments of the debt swap program between the 2 countries.