María’s Note: $1 Billion Debt Relief

After months of problems and obstacles, the US government is approaching an agreement with Morsi’s government for $1 billion debt relief from the $3.2 billion that Egypt owes the US, in order to help reviving Egypt’s economy during this transitional period. The American delegation, which is in Egypt since last week, has been in talks with the Egyptian government to study how to strengthen the deteriorated economy in the country through loans and different measures of market liberalization. The agreement is not concluded yet and the final notice is expected by the end of this month.

Representatives from almost 50 American companies are expected to arrive to Egypt during the coming week to consider investments and new deals in the country. 

The American economic aid package seems a clear wink to the government of Mohamed Morsi. Furthermore, it symbolizes the willingness of the Obama administration to keep the relationship between both countries in good shape.  

The president Mohamed Morsi has also requested a $4.8 billion loan from the IMF that would help Egypt in great measure to overcome the deep economic crisis the country is immersed in. According to Lagarde, the IMF is still considering the conditions of the loan and the final verdict is expected to be ready by the end of this year.