CAIRO – Egypt’s interim government has agreed a $3 billion loan package with the International Monetary Fund to help stabilise the country’s finances during the post-Mubarak transition period.
The deal was hailed by the Egyptian finance minister as a “fund to relaunch the Egyptian economy” and a first step towards tackling a national budget deficit that has escalated sharply in the aftermath of this year’s political upheaval.
US president Barack Obama has also promised Egypt $1 billion in loan guarantees as well as a further $1 billion of debt cancellation. French leader Nicolas Sarkozy has said the G8 will provide up to $10bn in direct aid to both Egypt and Tunisia. – (Reuters)