Exclusive: Egypt explores debt-swap models tied to sustainable development goals – FinMin
Egypt is increasing its focus on debt-management mechanisms that link debt reduction to sustainable development goals, while working with international partners on models that could channel more resources into priority sectors, Finance Minister Ahmed Kouchouk said on Thursday.
He said Egypt has already implemented several debt-swap programmes with international partners, creating arrangements that deliver mutual benefits for creditors and debtors while directing resources toward development priorities.
“Debt-swap agreements can provide a win-win model” for both creditors and debtor countries, Kouchouk said during the British Egyptian Business Association’s (BEBA) business mission to London.
He said such arrangements allow creditors to support high-impact development projects while helping countries create additional fiscal space to invest in key sectors and strengthen long-term economic performance.
The comments came in response to a question from Dina Abdel Fattah, chief executive of Exlnt Communications and BEBA’s public relations and communications partner, on whether Egypt had explored the possibility of converting part of its external debt into investments in human capital, including education, healthcare, and skills development.
Abdel Fattah said debt-for-development arrangements, coupled with targeted debt-relief measures, could help support economic growth, improve social outcomes, and reinforce the country’s broader reform agenda.
Kouchouk also highlighted Egypt’s efforts to advance international discussions on debt sustainability and development financing, noting that the country recently played a leading role in launching a global platform dedicated to debt swaps and innovative financing solutions.
The initiative is designed to facilitate knowledge-sharing, exchange best practices, and develop practical frameworks that enable countries to transform debt obligations into investments that support sustainable growth, he said.
Egypt is continuing to work with international partners and financial institutions to develop models that better align debt-management strategies with national development goals, Kouchouk added.
He said a key objective is to ensure that future debt-conversion arrangements generate tangible economic and social benefits by channeling resources into priority areas, including development projects, social services, and human capital investment.