Kerry: US to give Egypt budget aid after assurance on IMF
LAST UPDATED: 03/03/2013 21:22
CAIRO - The United States will release $190 million in budget aid to Egypt following an assurance from President Mohamed Morsi that he plans to "complete the IMF process", US Secretary of State John Kerry said on Sunday.
Cairo says it wants to reopen talks with the IMF on a $4.8 billion loan which was agreed in principle last November but suspended at Cairo's request following street unrest.
"In light of Egypt's extreme needs and President Morsi's assurance that he plans to complete the IMF process, today I advised him the United States will now provide the first $190 million of our pledged $450 million in budget support funds," Kerry said in a statement after meeting Mursi.
Kerry described the funds as "a good-faith effort to spur reform and help the Egyptian people at this difficult time".
Political turmoil in Egypt since a popular uprising overthrew President Hosni Mubarak two years ago has frightened away foreign investors and tourists, a major source of the foreign currency it needs to pay for wheat and fuel imports.