Egypt, China debt swap agreement benefits health and transportation sectors

Egypt's debt swap agreement with China is set to yield benefits in the form of new and renewable energy projects, advancements in technical education, and projects that will directly impact the health and transportation sectors. This was according to Samir Sabry, the Rapporteur of the National Dialogue Investment Committee. He further explained that these sectors would gain from the debt swap agreement as investments instead of loans. Concurrently, Chinese companies would gain by entering as foreign direct investors, regardless of the events in the Middle East. Debt swaps are a new tool being globally utilised within sustainable development. Egypt recently signed an understanding memorandum in the field of debt swaps with the Chinese International Development Cooperation Agency, making it the first country to conclude such an agreement with the agency. The Chairman of the Executive Board of Trustees of the Egyptian-Chinese Businessmen Foundation, Maged al-Manzalawy, said that signing the debt swap agreement contributes to pressure relief on Cairo’s commitment to repay short-term debts. This agreement will take part of the eight billion dollar debt owed to China and direct it to finance development projects in local currency. This move is expected to boost the growth rate of the Egyptian economy, reduce pressure on the dollar to pay international obligations in the next three years and help Egypt face a challenge of paying instalments and interests on huge short-term debts.