Egypt Launches Initiative to Ease Debts of Developing Countries

Egyptian Finance Minister Mohamed Maait presents the initiative at the meeting in Addis Ababa. (Asharq Al-Awsat)
Egyptian Finance Minister Mohamed Maait presents the initiative at the meeting in Addis Ababa. (Asharq Al-Awsat)
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Egypt Launches Initiative to Ease Debts of Developing Countries

Egyptian Finance Minister Mohamed Maait presents the initiative at the meeting in Addis Ababa. (Asharq Al-Awsat)
Egyptian Finance Minister Mohamed Maait presents the initiative at the meeting in Addis Ababa. (Asharq Al-Awsat)

Egyptian Finance Minister Mohamed Maait called on Tuesday for easing the debts of developing countries by launching new consultations that “makes the debt crisis part of the solution”.

Maait presented the “Sustainable Debt Coalition” to transform the debt burdens of developing countries into sustainable solutions for green recovery.

The minister spoke at the meetings with African counterparts and UN officials on the sidelines of the Economic Commission for Africa (ECA) 2023 annual meeting in Addis Ababa, Ethiopia.

Maait warned that debts affect development priorities, and reduce the capital available for investment in climate, noting that the problematic financial situation of emerging markets hinders climate action and development.

The minister called for kicking off a new path of consultations that makes the debt crisis part of the solution by encouraging additional sustainable green investments and addressing environmental challenges.

He stressed that the initiative will help in creating financial space to promote environmentally friendly investments and provides a diplomatic opportunity to align on using key performance indicators for debt issuances, whether in the context of refinancing existing debt or for new issuances.

The Egyptian Ministry of Finance said the minister called on countries and financial institutions to join the initiative and establish a common framework to regulate sustainable debt transactions.

Moreover, Maait added that the measures and the necessary initiatives to confront climate change have become crucial to reducing poverty and sustainably promoting shared prosperity.

He noted that it couldn’t be achieved unless African countries obtain affordable and low-cost financing, while mobilizing more green investments.

In 2010, African governments were spending an average of less than 5 percent of their revenues to service foreign loans, compared to 16.5 percent in 2021. This is higher than the average of 12.5 percent in other emerging markets, noted Maait.

African countries could not invest sufficiently in climate solutions except with a significant increase in financing, considering that Africa is the least contributing to climate change and the most affected, he explained.

Maait later met the UN Economic Commission for Africa’s Deputy Executive Secretary and Chief Economist, Hanan Morsi.

He revealed that Egypt is keen on launching the Sustainable Debt Coalition before June.

He noted that it was possible to hold an introductory session on the coalition and its objectives on the sidelines of the spring meetings of the International Monetary Fund and the World Bank in April.

Maait stressed the importance of African and non-African support for the Egyptian initiative to bolster green growth rates and accelerate economic development.

Meeting with Maait, the finance ministers of Ghana and Kenya expressed their readiness to support the initiative.



Dollar Eyes Weekly Rise into US-China Trade Talks 

A clerk sorts US hundred-dollar notes at the headquarters of Hana Bank in Seoul, South Korea, 08 May 2025. (EPA/Yonhap)
A clerk sorts US hundred-dollar notes at the headquarters of Hana Bank in Seoul, South Korea, 08 May 2025. (EPA/Yonhap)
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Dollar Eyes Weekly Rise into US-China Trade Talks 

A clerk sorts US hundred-dollar notes at the headquarters of Hana Bank in Seoul, South Korea, 08 May 2025. (EPA/Yonhap)
A clerk sorts US hundred-dollar notes at the headquarters of Hana Bank in Seoul, South Korea, 08 May 2025. (EPA/Yonhap)

The dollar headed for a weekly gain on most major peers on Friday as a US-UK trade deal raised hopes of progress in looming US-China talks, while bets of imminent Fed rate cuts receded after the central bank indicated it was in no hurry.

Financial markets are heading into the weekend with the focus squarely on trade negotiations between Washington and Beijing due to begin on Saturday in Switzerland.

The euro touched a one-month low of $1.1197 in Asia and was down about 0.6% for the week. The yen has weakened about 0.4% this week and hit a one-month trough of 146.18 per dollar, before steadying around 145.48 on Friday.

Sterling, which had rallied on news reports of an impending US-UK trade deal, gave back gains when the agreement turned out to be pretty limited and struck a three-week low of $1.3220 in early trade on Friday.

The "general terms" agreement modestly expands agricultural access for both countries and lowers prohibitive US duties on British car exports, but leaves in place the 10% baseline.

"The market reaction of buying USD may reflect greater optimism that such tariff deals are doable," said Steve Englander, global head of G10 currency research at Standard Chartered, in a note to clients.

"Trump's dangling of the prospect of a trade detente with China may be adding to optimism that the global disruption from trade wars may not be as severe as markets have feared," he said.

"For the time being, G10 markets would be relieved if US and China bilateral tariffs were rolled back, even if they remain well above January 19 levels."

Bitcoin has surged back above $100,000, reflecting a refreshed appetite for risk-taking in markets' more speculative corners.

Announcing the UK deal, Trump said he expects substantive negotiations between the US and China this weekend and that tariffs on Beijing of 145% would likely come down.

The administration is weighing a plan to slash the tariff on Chinese imports by more than half, the New York Post reported, citing unidentified sources, though the White House dismissed that as speculation.

The Australian dollar headed for its first weekly drop in a month, with a 0.7% fall to $0.6407. The New Zealand dollar was likewise lower, clinging to support at $0.5895, just above its 200-day moving average.

On the central bank front this week moves were as expected with the Bank of England cutting, while Sweden, Norway and the United States left rates on hold.

However, Federal Reserve Chair Jerome Powell's remarks, emphasising the level of uncertainty, were taken as reducing the likelihood the Fed lowers rates any time soon and market pricing for a cut in June has drifted to about 17% from about 55% a week ago.

In contrast with G10 peers, the dollar was lower on several Asian currencies this week after a shock surge in the Taiwan dollar.

After a volatile few days it has settled around 30 to the dollar, more than 6% stronger from where it had finished April. The Singapore dollar is not far from decade highs. The Hong Kong dollar has retreated from the strong side of its band after heavy intervention from the Hong Kong Monetary Authority.

India's rupee opened under renewed pressure on Friday as conflict between India and Pakistan escalates. It dropped sharply on Thursday and, at 85.55 to the dollar, is eyeing its heaviest weekly fall since 2022.