An agreement between Egypt, Germany, Ethiopia and the Global Fund to fight malaria and AIDS, while simultaneously canceling much of Egypt’s debt to Germany, was signed by the Minister of Planning and International Cooperation Faiza Abul Naga on Monday.
According to the agreement, 25 percent of Egypt’s debt to Germany, or €3.3 million, will be used to eradicate malaria and support health services in Ethiopian villages. An additional 25 percent of the debt will be canceled and Egypt will not have to repay it.
In a press conference on Monday, Abul Naga said the agreement between Egypt and Germany comes within the framework of swapping debt for health related development projects.
Ethiopian Ambassador to Egypt Mahmoud Dareg said the aid would help remote villages in Ethiopia while having a positive impact on the health aspect of development work.
He said he welcomed the initiative by both Egypt and Germany and that the three countries would cooperate in the future so that all Nile Basin states could benefit from Egypt's support.
The Egyptian government previously announced it would reject any agreements that would require Egypt to waive its property rights on a number of assets and local companies in exchange for reducing its European debts.
Abul Naga said all debt agreements signed by Egypt involve the establishment of development projects in exchange for partial or total debt reduction.
Translated from the Arabic Edition