Prime Minister: Egypt Is One of Only Seven Countries to Succeed in Debt Swap
Prime Minister confirms Egypt's success in debt swaps among only seven countries and aims to reduce external debt.
SUMMARY
Prime Minister Mostafa Madbouly confirmed Egypt's success in the debt swap file as one of only seven countries, noting that the state aims to reduce external debt as a percentage of GDP to safe limits between 40% and 45%.
KEY HIGHLIGHTS
- Debt swap is a successful and unconventional mechanism to eliminate debt.
- Egypt is one of only seven countries to succeed in the debt swap file.
- Debt swaps are being implemented with countries such as Germany, Italy, and China.
- Target to reduce external debt to 40% or less of GDP.
CORE SUBJECT
Egypt's success in debt swaps and reduction of external debt
Dr. Mostafa Madbouly, Prime Minister, stated that debt swap represents a highly successful and unconventional mechanism to eliminate debt.
He added during a press conference on Wednesday that this approach involves converting debt that was due to be paid to certain institutions into investments and projects that achieve developmental returns and serve the citizen.
He mentioned that Egypt is one of only seven countries that have succeeded in the debt swap file, affirming that the country is progressing successfully in this path, which is being implemented with several countries such as Germany, Italy, and China.
He reiterated that debt swaps have great benefits, explaining that the state will continue to implement it in the coming period, saying that the state aims to reduce external debt as a percentage of GDP.
He emphasized that the state aims to be at the lowest possible safe debt limits according to the rates set by international institutions in this regard, which range between 40% and 45% of GDP.
He confirmed that the state aims to reduce the ratio from 44% to 40% or less during the upcoming period.
KEYWORDS
MENTIONED ENTITIES 5
Mostafa Madbouly
👤 Person_MalePrime Minister of Egypt
Egypt
📍 Location_CountryArab country in North Africa
Germany
📍 Location_CountryEuropean country participating in debt swap with Egypt
Italy
📍 Location_CountryEuropean country participating in debt swap with Egypt
China
📍 Location_CountryAsian country participating in debt swap with Egypt