14 November 2012

Egypt: EU Approves Financial Aid to Egypt Worth ?5Billion

The European Union (EU) approved on Wednesday allocating a financial aid to Egypt worth €5 billion following a meeting between President Mohamed Mursi and EU representative for foreign affairs Catherine Ashton.

Contributing to the aid are the European Investment Bank, with €2 bln, the European Bank for Reconstruction and Development, with €2 bln, and bilateral support between European countries and Egypt worth €1 bln.

The amount will be transferred over two years, said Egypt's presidential spokesman Yasser Ali.

Meanwhile, Egypt is negotiating a $4.8 billion loan with the International Monetary Fund in the framework of its efforts to address twin deficits in the budget and balance payments.

Ashton said that the EU is committed to supporting Egypt, stressing that the large aid is a reassuring message to European and global investors.

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