Germany in 40bn euro debt swap with Pakistan: Gulf Times

By Anwar Elshamy

SETTING an example of innovative financing for development, Germany, Pakistan and the Global Fund to Fight Aids, Tuberculosis and Malaria have signed a new type of debt swap on the sidelines of the Second International conference on Financing for Development being held in Doha.

Under this Debt2Health agreement, Germany cancelled 40mn euros of Pakistani debt on the condition that Pakistan invests 20mn euros in domestic health programmes supported by the Global Fund.

The agreement was concluded by the Heidermarie Wieczorek Zeul, the special envoy of the UN General secretary for the conference and Federal Minister of economic cooperation and development, Germany and Hina Rabbani Khar minister of state for finance and economic affairs, Pakistan and Dr Michel Kazatchkine, executive director of the Global fund. Speaking at a press conference, the Minister of Economic Co-operation and Development of Germany Wieczorek-Zeul said that Pakistan is only the second country to benefit from the Debt2Health creative financing instrument.

For more on this article, please click on the following link: Germany in 40bn euro debt swap with Pakistan: Gulf Times