Egypt is pushing for the creation of an international "Borrowers’ Forum" to enhance cooperation among debtor nations and strengthen their influence within global financial institutions, according to Dr. Mahmoud Mohieldin, the UN Special Envoy on Financing for Development and Executive Director at the International Monetary Fund (IMF).
In a telveised interview, Mohieldin said the proposed forum would function in a manner similar to the Paris Club of creditors, but for borrowing countries. The initiative aims to facilitate the exchange of technical advice, encourage financial collaboration, and give debtor nations a stronger collective voice in institutions such as the IMF and the World Bank.
He affirmed that such a mechanism could help highly indebted countries—particularly low-income African nations—secure more favorable financing terms, including concessional loans or increased grant support.
“There are technically sound and politically feasible solutions to the global debt crisis,” Mohieldin said, noting that the UN Secretary-General had tasked him with identifying practical measures. These efforts have already resulted in 11 global and regional proposals, he added.
However, Mohieldin underlined that real progress depends on governments improving debt management capacities and prioritizing private investment over excessive borrowing.
Citing Egypt as an example, he pointed to discussions on involving the private sector in strategic projects such as airports. “This is a positive step,” he said, adding that both international and domestic investment—alongside Arab capital inflows—should be mobilized to reduce reliance on debt.
Mohieldin also highlighted that both international and domestic debt challenges, including interest rate trade-offs, have potential solutions. But he reiterated that a stronger role for the private sector is essential for sustainable development.
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