US to forgive a third of Egypt’s debt over 3 years

The United States has agreed to cancel one-third of Egypt's debts over the course of three years, the state news agency MENA quoted Finance Minister Samir Radwan as saying on Thursday.

Egypt owes the United States about US$3 billion, and instead of repaying the debt, Egypt would use the funds to finance a number of development projects that are still under discussion, Radwan said.

US President Barack Obama announced in May that the United States planned to relieve about US$1 billion in Egyptian debts and guarantee another US$1 billion in borrowing by Egypt to support its economy after the uprising that ousted President Hosni Mubarak.

Radwan made the statement after meeting with David Lipton, a White House adviser on international economic affairs who is visiting Cairo, MENA reported.

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