Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat, told Bloomberg in Washington that the negotiations have been fully completed, and they are now finalizing the required documentation on our side.
Egypt is close to securing $300 million in budget support from the Asian Infrastructure Investment Bank (AIIB), according to Bloomberg.
Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat, told Bloomberg in Washington that the negotiations have been fully completed, and they are now finalizing the required documentation on our side.
She added that the agreement is expected to be completed by June.
The upcoming support from the Beijing-based bank will help bolster the economy of the Middle East’s most populous country, which emerged last year from its worst economic crisis in decades, aided by a global rescue package worth $57 billion.
Speaking during the IMF and World Bank Spring Meetings, Al-Mashat explained that the government is pursuing further agreements to convert outstanding debts owed to other countries into investments within Egypt.
A recent example includes the United Arab Emirates’ conversion of $11 billion in deposits at Egypt’s central bank into real estate investments, forming part of a $35 billion package announced last year, which constituted the largest portion of Egypt’s international bailout.
Additionally, Bloomberg reported last week that Kuwait is in advanced talks to convert $4 billion worth of deposits held in Egypt into investments.
Al-Mashat highlighted that the UAE’s deal served as a significant illustrative example and could provide a model for other countries to follow.
She added that Egypt is also negotiating with Germany on another debt swap agreement, noting that Berlin is likely to invest in energy transition projects.
She explained that Such agreements help reduce Egypt’s external debt.
State-run Egyptian media also reported last week that Egypt is in talks with China to convert some of its debts into interest-free loans to finance major development projects.
The Egyptian economy recorded its fastest quarterly growth in more than two years during the last quarter of 2024.
Al-Mashat further noted that the recent decision to privatize the management and operation of about 11 airports in Egypt has attracted strong investor interest. The International Finance Corporation (IFC), the private-sector arm of the World Bank, is assisting the government in structuring these transactions.
