US pledges $450m to back Egypt economy

Posted on March 03, 2013

US pledges $450m to back Egypt economy

US Secretary of State John Kerry has pledged 450 million Dollars (£300m) to support Egypt's faltering economy but warned Cairo that "more hard work" was needed.

"It is clear that more hard work and compromise will be required to restore unity, political stability and economic health to Egypt," Mr Kerry said after Sunday's talks, on the second day of his visit to Egypt.

Economic challenge
"The Egyptian people must come together to address their economic challenge," he stressed.

Mr Kerry's comments came after talks in the Egyptian capital with President Mohammed Morsi.

He also urged Mr Morsi to ensure that next month's elections "are free, fair and transparent."

The elections are being boycotted by the main opposition group, amid continuing mass protests.

The secular National Salvation Front (NSF) says electoral laws favour allies of President Morsi, a charge he denies.

Mr Kerry also said Washington would now be providing the first $190m of the pledged $450m in budget support funds for Egypt.

Mr Kerry had urged the Egyptian government to reach a deal on four point eight billion Dollars IMF loan that could unlock more US funds and help overcome a severe economic crisis.

Mr Morsi's government agreed the loan in principle last November but it was later put on hold amid the continuing street protests.

John Kerry's first overseas trip as secretary of state is taking him to 11 countries in Europe and the Middle East.

Justice
However, his departure from Cairo was delayed because hundreds of al-Ahly football supporters blocked the road to the airport demanding justice over last year's football riot in Port Said in which 74 fans died.

Egypt remains sharply divided between Islamists and their liberal and secular opponents.

More than 70 people were killed in violence between security forces and protesters following the second anniversary of the revolution that ousted President Hosni Mubarak.