US Secretary of State John Kerry promised financial assistance in the amount of $ 190 million to Egypt during a meeting with Egyptian President Mohammed Morsi. Moreover, this amount is only a part of the total amount of financial assistance for the purpose of supporting the budget — its total size is 450 million dollars. Another $ 60 million will be transferred to the newly created enterprise support fund.
The reason for such generous loans is the «emergency needs» of the country. According to Voice of America, the decision to grant aid came after the Egyptian president assured the United States that political reforms would continue in the country and that efforts would be made to obtain a loan from the International Monetary Fund, which was repeatedly delayed.
The internal problems of Egypt were at the center of discussion during the high visit. A deep political split continues in the country, and the economy is in a deplorable state. The combination of these two factors scares off both investors and tourists, which only aggravates the economic situation, as a result, the level of foreign reserves dropped to dangerously low levels. According to some economists, without financial injections from outside, Egypt can become bankrupt in a short time. However, loans are fraught with austerity decisions, which naturally generate protests. Which, by the way, did not stop in Egypt all the time of the official visit.
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