Cairo - to the United States is studying ways to support the Egyptian economy after the overthrow of Hosni Mubarak, the US Embassy said Monday after a newspaper U.S. said Washington had decided to provide $ 1 billion in debt relief.
The Washington Post, citing the US authorities without a name, said Sunday that the relief would be part of a program of economic aid in Egypt which would also include commercial incentives and investment.
The report of the U.S. helped stimulate Egyptian actions. Monday closed reference index 1.1% higher.
"We are still in the process of consultations on how to the United States can help the Egypt economically it progresses in its transition to democracy," the Embassy said in a statement sent to Reuters.
The political unrest that led to the resignation of President Hosni Mubarak on 11 February scare tourism and foreign investment, the main sources of currency and caused other business to slow down.
Last month, the Monetary Fund International said that Egypt had reported that 10 to 12 billion dollars to meet a funding deficit.
The Egypt said that he sought $ 10 billion in funding from international donors and rich nations to deal with the unrest.
Unrest has reduced tax revenues at a time when the requirements of the demonstrators for employment and higher wages have caused the Government stimulate social spending.
The Minister of finance Samir Radwan, said last week that expected budget deficit of the Egypt to extend to 9.4% of the gross domestic product (GDP) of the fiscal year 2011-2012 a 8.5% expected this year.
The country's economy has contracted by about 7% of January-March and the Monetary Fund International is projecting a plunge in the growth of 1.0% this year, well below the long-term average, following expansion of 5.1% in 2010.
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