The Obama administration is preparing a US$1 billion debt relief package for Egypt, a senior official told the Washington Post on Saturday.
The aid will reportedly be part of a major economic assistance package that also includes trade and investment incentives and is intended to help stabilise Egypt after demonstrations forced out president Hosni Mubarak on 11 February.
The American newspaper claims the Obama administration sees Egypt as more critical to US interests than Libya and Syria. "Washington has long regarded Egypt as a moderating influence in the Middle East. With one-quarter of the world’s Arabs, Egypt could emerge as a democratic model in the region — or, if its revolution fails, a locus of instability or extremism," said the report.
The Egyptian finance and planning ministers visited Washington last month to seek forgiveness of the country’s $3.6bn debt. Egypt pays around $350m per year to service the debt, which it incurred buying American farm products.
No assistance has yet been formally announced.
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