Germany to Waive Some Egyptian Debt

Germany plans to waive debt of 240 million euros to Egypt if the funds are used to support democratic reforms, Foreign Minister Guido Westerwelle said after a meeting with his Egyptian counterpart.

The debt forgiveness, subject to approval by the German government, would cover a four-year period. Separately, he said. Germany will also invest 150 million euros over the next two years to help build democratic structures in Egypt.

Speaking at a news conference in Berlin with Egypt's foreign minister Mohammed Amr, Westerwelle also said he hopes to see economic ties between Germany and Egypt intensified.

Egypt has received billions of dollars in commitments to help plug a balance of payment gaps estimated at $11 billion in the 2011/12 fiscal year.