World Bank Will Lend Up to $6 Billion to Egypt, Tunisia Following Revolts

[Purveyor]

By Sandrine Rastello

May 24 (Bloomberg) -- The World Bank said it plans to provide as much as $6 billion in financing to Egypt and Tunisia over the next two years to help them modernize their economies after popular revolts toppled their leaders this year.

Support would include $4.5 billion for Egypt, where the International Monetary Fund is also expected to provide a loan, World Bank President Robert Zoellick said on a conference call today. The Washington-based bank may also make $1 billion available to Tunisia, in addition to $500 million in aid announced last month and not yet approved by the lender’s board.

“The revolutions in the Middle East and North Africa offer great opportunities but also pose daunting challenges and risks,” Zoellick said.

Leaders from the Group of Eight will discuss support for countries in the region in the wake of pro-democracy movements at a meeting this week in Deauville, France. President Barack Obama has proposed $2 billion in U.S. assistance for Egypt, $1 billion in loan guarantees through the Overseas Private Investment Corp. and cancellation of $1 billion in debt, about a third of what Egypt owes the U.S.

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