World Bank Unveils 6 billion for the Egypt and Tunisia (Reuters)

WASHINGTON (Reuters) - President of the Bank World Robert Zoellick on Tuesday unveiled $ 6 billion in funding to help the budget address Tunisia and Egypt and shortfalls in reserve this year and next year, following the popular uprisings which took end years of dictatorships, but which have caused economic hardship.

Zoellick said that a meeting of the Group of eight in France this week will discuss transitions sweeping the country in the Middle East and the North Africa.

He said that the World Bank works closely with the IMF, which oversees a separate envelope focused on macroeconomic stability. An IMF mission is currently in Egypt, he added.

For the Egypt, the plans of the World Bank to make available to $ 4.5 billion in the course of the next 24 months, including 1 billion dollars this year to budget support and $ 1 billion next year depending on how far from the political and economic reforms have advanced.

The remaining $ 2.5 billion will be invested in development in Egypt projects, loans to support the private sector and political risk guarantees.

For the Tunisia, the World Bank plans $ 1 billion in support for the budget and investment projects, beyond $ 500 million already announced to help the Government, Zoellick added.

In addition, the World Bank plans to lend up to 400 million for projects in the private sector and 100 million dollars in guaranteed investments, said Zoellick. He said that the funding will be disbursed after approval by the World Bank Board next month.

He noted that provisional Government of the Tunisia also dealt with the cost of some 50,000 refugees fleeing the conflict in the neighbouring countries of the Libya, with some 6 000 to 7 000 in United Nations camps.

(Reported by Lesley Wroughton;) (Editing by James Dalgleish)

Minister: The Egypt almost cover the World Bank

Cairo, Egypt is a loan from the World Bank $ 2.2 billion, the Minister of Finance announced, as the military of the country said Monday the unrest of recent months leaders beat the rate of economic growth and are costing the nation of 40 million dollars a day in lost tourism revenues.

The Minister of finance Samir Radwan also said that a team of the Monetary Fund International was expected in Cairo within days to find ways to support the efforts of the Government to stimulate the economy. His comments came in a statement issued by the Ministry and did not clear when the agreement can be completed.

Separately, brigadier Mahmoud Nasr, Minister of defence Assistant for financial affairs, said the unrest has led to a drop of 80 per cent of revenues from tourism, a vital sector.

The figures revealed by the head of the Supreme Military Council Finance offers still another window in the Basinger suffered by the most populous nation in the Arab world following mass protests filed former President Hosni Mubarak.

These protests expanded after the eviction of Mubarak mid-February to include strikes widespread work led a strong reduction in manufacturing and exports so that foreign direct investment income and tourism collapsed. With the fall of incomes and costs mounting, the Egypt has tended to the World Bank and the IMF for assistance.

Comments by the agency MENA Nasr official press, said the GDP growth is about 1-2 per cent over the forecast pre-unrest about 6% for the fiscal year ending June 30. The projection is even lower than that offered by Radwan and other officials who had estimated GDP growth would slow to between 2 and 3% in the current financial year.

While the mass protests that toppled Mubarak have been largely fueled by a crescendo of frustration before prices increasing income disparity and the rise in arrow in a country where half the 80 million people live on or below $2 by the World Bank poverty daythe continuation of protests did exacerbate economic problems of the country.

Annual inflation of the urban in April rose to 12.1% compared to 11.5% in March, the Government said last week, citing a continued increase in food prices.

Economic problems have emerged for months.

As the events took place at the end of January, the stock market plunged - a decrease of Nasr said has led to losses of 113 billion pounds ($19 billion). The Exchange remained closed for almost two months that officials first faced with the closure of the Bank and strike in the sector, then sought to adopt safeguards to prevent its collapse, once it reopened.

The market, which reopened near the end of the month of March, has vacillated between moderate gains and losses. Monday, the benchmark index closed EGX30 1.2% higher, at 5,127 points, but its losses from the date of the year were still more than 28%.

The Government and military leaders have tried to revive the economy, but near daily protests have crimped these efforts and resulted in a 40% decline in exports and almost a reduction of half of the levels of production before the crisis of the nationofficials said.

Despite the losses, Nasr said that the army was "optimistic", noting that the problems had not affected economic infrastructure of the country and that the plants were not damaged. As a result, the challenges are "difficult but not impossible", he said.

The coming period is a time "action and production, pas words," Nasr was quoted saying, so that the Egypt can go beyond the current crisis.

Us weighs relief from debt for post-Mubarak Egypt (AP)

WASHINGTON - the administration Obama is considering a package of economic assistance, including debt relief, to help the Egypt in its transition to democracy after the eviction of former President Hosni Mubarak in February.

The State Department, said Monday that discussions are underway between us and the Government of transition from the Egypt on how to better aid the country. A top U.S. diplomat was in Egypt last week to discuss various options, but Department spokesman Mark Toner said it is too early to say if or how much debt relief will be part of the package. Toner noted that Congress would have to be consulted on any proposal.

During this time, the Toner condemned religious violence that struck the Egypt over the weekend in which crowds of Muslims burned a Coptic Christian Church, provoking riots that left 13 dead.

U.S. eyes ways to support the economy battered Egypt

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.