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FINANCIAL NEWS
US, Egypt close to seal USD1b loan agreement
04 Sep 2012
(MENAFN) the US and Egypt are in the final stages of talks over USD1 billion loan deal, as Washington seeks to help the cash-strapped country to overcome its ailing economy following last year’s popular revolution, Reuters reported.
According to a US senior official, US diplomats were working with Egypt’s new president Mohamed Mursi to finalize the agreement.
The advanced talks reflect a cautious easing of US suspicions about Mursi and a keenness to maintain the longstanding US-Egyptian partnership from deteriorating further.
The US and Egypt were close allies under former President Hosni Mubarak, were the US used to give an annual USD1.3 billion in military aid to Egypt in addition to other assistance.
US President Barak Obama first pledged economic help for Cairo last year. However, difficulties kept from completing the debt relief deal; which is reported to involve a mix of debt payment waivers and complicated ‘debt swaps’.
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