US to Offer $ 450 Million for Egypt’s Budget

Planning and International Cooperation Minister Ashraf al-Arabi said that the United States government will respond to offer $ 450 million grant in support for Egypt's state budget as well as negotiations to write off $ 650 million from Egypt's debts. The Minister pointed out that $ 10 billion loans will be available from other countries as soon as Egypt obtains the International Monetary Fund's loan, hoping it will be by the end of this year. Arabi denied that loan negotiations with the International Monetary Fund (IMF) have referred to any new program of privatization needed from Egypt.

Arabi, speaking at a press conference on 12/9/2012, said the Egyptian government has conducted a national economic reform program to be put into effect within the coming period to solve the accumulating structural problems in Egypt, rationalize government spending, cut down the budget deficit that reached 135 billion pounds and provide new resources to achieve human development and social justice. He said the IMF officials, who will arrive in Egypt within weeks, will be updated on this program. He also denied any plans to increase prices, noting that only energy prices for energy-consuming factories will be increased by 28 percent but they will be asked not to raise the price of their products. In case the IMF loan was approved, the minister said the loan interest will be 1.1 percent with an 89-month grace period to be repaid over five years.