Egypt's Ministry of Finance clarified on Thursday that the purpose of allocating a prime land plot to the ministry in the Red Sea governorate is to enter into partnerships with entities operating in the financial sector, as well as with economic authorities in exchange for debt owned by budgetary bodies to these entities, according to a statement by the Ministry of Finance a copy of which was made available for Amwal Al Ghad English. These partnerships, the statement clarified, shall allow for the development of the land. The revenues of the developments shall be used in repayment of government debt, thus lowering the overall public debt. The ministry clarified that the ownership of the land shall not be transferred from the government to any partner. Part of it will serve as collateral for sukuk to secure budget financing on favourable terms. According to the ministry's statement, part of the land will be employed to generate long-term development returns through partnerships with state financial institutions and economic authorities. These arrangements aim to exchange portions of the state budget's outstanding debts for joint investments, thereby easing debt burdens and debt service costs while boosting land development into productive, service, tourism, and real estate projects. The move will boost public finances, reduce debt, stimulate the economy, and enhance Egypt's competitiveness. It will also increase spending on social protection programmes and key sectors like health and education, improving services for Egyptians. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
