Part of debts to Germany, Italy used in development projects

About $ 624 million comprising part of Egypt's debts to Germany and Italy will be used in development projects.

Minister of State for Foreign Affairs, Fayza Abul Naga, told a news conference Monday that Italy has allocated $ 224 million and Germany $ 400 million for these projects.

The International Fund for Agricultural Development (IFAD) has also earmarked $ 48 million for agricultural projects on 56,000 feddans, west of Nubareya near Alexandria.

Under the deal, Italy will pay $ 30 million and (IFAD) will pay for the rest. "The project is expected to create 11,000 new jobs," she said.

Bilateral talks are also due shortly with Germany's Deputy Minister for Economy to conclude a debt-transfer agreement for development projects.

She said Egypt has used LE 241 million from Switzerland to slash part of its debts in implementing development projects through the Swiss-Egyptian fund.

Answering a question on President's Mubarak's philosophy on self-dependence, she said the President wants Egypt not to depend on foreign debts and assistances, rather it must shift to conclude partnership with donor countries, i.e. to have an economy based on investment and export and was that Egypt managed to reach with USA which cuts its annual assistances to Egypt by 5 percent.