The official stated that the program aims to convert debts owed to China into investments in green projects in early 2024
Egypt reached an advanced stage in negotiations regarding a debt swap program agreement with China worth $100 to $120 million, according to local media reports citing an unnamed official.
The official stated that the program aims to convert debts owed to China into investments in green projects in early 2024.
Egypt is considered the first country to conclude a debt swap program agreement with China, in light of the growing economic and political relations between the two countries, explaining that the debt swap program is limited to development loans only.
Earlier in October, Egypt and China signed a memorandum of understanding (MoU) on development debt swaps during the The 3rd Belt and Road Forum for International Cooperation.
The MoU aims to enhance cooperation between the two countries in the field of debt swaps in order to implement development projects. Through this partnership, Egypt will achieve sustainable development by using tranches of Chinese debt to implement development projects agreed upon by both sides.
It is important to note that the volume of trade exchange between Egypt and China amounts to $20 billion dollars and Egypt’s total exports to China recorded $152 million in May 2023.
