CAIRO – 26 December 2023: China and Egypt are in an advanced stage of negotiations about a debt swap program agreement amounting $100 to $120 million, according to an unnamed official cited by local media outlets.
The debt program aims to convert debts owed to China into investments in green projects in early 2024, the official said.
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.
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