Egypt's Minister of Planning, Economic Development and International Cooperation, Rania Al-Mashat, called on the international community to lower borrowing costs and expand debt-for-development swap solutions to alleviate financial burdens on developing countries, during a UN forum in New York. Speaking at a high-level ministerial dialogue on "Lowering Borrowing Costs and Advancing Development-Oriented Debt Solutions," Al-Mashat addressed the United Nations Economic and Social Council (ECOSOC) Forum on Financing for Development. The forum is part of the preparatory process for the 4th International Conference on Financing for Development, scheduled for Seville, Spain, in June. Minister Al-Mashat emphasised that "financial challenges have impacted the available fiscal space for developing countries, particularly in Africa." She stressed the necessity for countries to clearly articulate their reform programmes, stating that "clear reforms and bankable projects enhance countries' credibility with financing institutions and investors" and contribute to reducing borrowing costs. Highlighting the scale of the challenge, Al-Mashat noted the financing required for Sustainable Development Goals (SDGs) and climate action is immense. "Overcoming the sustainable development financing gap is impossible without a genuine partnership with the private sector," she stated, adding that this requires governments to provide a "competitive, investment-attractive environment." The minister pointed out that despite the availability of instruments like blended finance and grants, accessing financing is often hindered by a lack of "bankable projects." She highlighted the importance of cooperation, knowledge sharing, and replicating successful development experiences, citing Egypt's national "NWFE" programme as a model country platform attracting investment through clear projects stimulating private sector involvement. Al-Mashat affirmed the Egyptian government's commitment to continuing its economic reform path, ensuring transparency in development cooperation projects, addressing SDG financing gaps, and encouraging private sector participation. She underscored Egypt's strong relationships with international financing institutions and development partners. Addressing the issue of rising debt, the minister described it as a challenge consuming significant financial resources for interest payments in many developing nations, especially in Africa. To overcome this, she advocated for increased efforts to mobilise domestic resources through developing capital markets, increasing private sector investments, maximising asset utilisation, and pursuing reforms that lower financing costs. Al-Mashat outlined Egypt's experience in expanding debt-for-development swap programmes with bilateral partners, redirecting debt equivalents to impactful development projects. She described this mechanism as an "innovative tool" contributing to alleviating debt burdens and improving credit ratings, noting that markets are now more receptive to debt swaps and restructuring. Concluding her remarks, Al-Mashat reaffirmed the critical importance of governments continuing to advance reform agendas with clarity and transparency. She stated that international financial institutions and multilateral development banks remain "essential partners" in mobilising finance, particularly for the private sector, provided projects are ready and plans are clear, while also highlighting the proven effectiveness of bilateral debt swaps.
