US Nears Deal for $1 Billion in Egypt Debt Relief

The United States is close to a deal with Egypt’s new government for $1 billion in debt relief as part of a U.S. and international assistance package designed to prop up the country’s faltering economy and aid its transition to democracy.

The United States is close to a deal with Egypt’s new government for $1 billion in debt relief as part of a U.S. and international assistance package designed to prop up the country’s faltering economy and aid its transition to democracy.

A team of senior U.S. diplomats has spent the last week in Cairo finalizing the agreement, which has been delayed by Egypt’s political turmoil and caution in Washington about rewarding its newly elected Islamist leadership. Egypt’s debt to the U.S. exceeds $3 billion.

Senior American officials said Monday a final announcement is expected later this month.

U.S. President Barack Obama first pledged economic help for Cairo last year. Obstacles remained to completing the debt relief deal – which is reported to involve a mix of debt payment waivers and complicated “debt swaps.”

The negotiations come as a trade delegation with representatives from nearly 50 U.S. businesses considering investment in Egypt is set to arrive at the end of the week. Under Secretary of State Robert Hormats, a former Goldman Sachs executive, will lead the group, which includes regional directors of companies such as Google, Boeing, Xerox and General Electric.