Germany to forgive $340 million in Egyptian debt

August 12, 2011 — BERLIN (AP) — Germany is pledging to cancel debts of up to €240 million ($340 million) owed by Egypt and invest the money in supporting the country's democratic reform process.

German Foreign Minister Guido Westerwelle and Egyptian counterpart Mohammed Amr on Friday issued a joint statement that called for debt forgiveness over the next four years. Westerwelle said the money would go to "jointly agreed reform measures." He said Germany separately is giving Egypt €150 million to help build democratic institutions.

Friday's statement says that Germany will support the setting-up of an Egyptian forensic lab among other measures. Westerwelle has long stressed the importance of backing up democratic change in Egypt by ensuring that the economy gets back on its feet.