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Libya grants US$ 2 billion loan to Egypt

Libya has granted an interest free loan, worth US$ 2 billion, to Egypt under an agreement signed Wednesday in Cairo, the Egyptian news agency, MENA, reported, quoting an official from the Libyan Finance ministry.

The loan is repayable over five years with a grace period of three years, said the official, who stressed that the agreement with Libya is aimed to support Egypt in its talks with the International Monetary Fund (IMF).

Egypt, which is facing a difficult financial situation, is currently negotiating with the IMF for a loan of US$ 4.8 billion. However, the loan is subject to conditionalities, inculding the reform of the subsidies system and tax increases while support from Arab countries is condition free.

The amount will be put at Egypt’s disposal next week and it is aimed at strengthening the Egyptian economy and the general budget of the State.

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