WASHINGTON - President Barack Obama will present a programme of economic assistance of the Egypt and the Tunisia, on Thursday in a broad effort to support democratic reforms in the Middle East and representatives of the North Africa, the United States, said.
Senior advisors to Obama overview of parts of his speech, said Wednesday that in the United States would bring the debt relief for a total of approximately 1 billion dollars "for a few years" in Egypt through a debt swap mechanism which would be to invest money to stimulate the employment of young people and support entrepreneurs.
Washington would also loan or guarantee loans to a total of $ 1 billion through the Overseas Private Investment Corp (CIPO) for the Egypt to fund the development of infrastructure and stimulating jobs, officials told reporters in a conference call.
Billions of dollars in additional funding would come from multilateral banks for development as well.
Administration seeks also to foster trade and economic development throughout the region and encourage private sector investment, officials said.
"We believe that these initiatives will help the Egypt and the Tunisia as they undertake the twin challenges of economic transformation and democratisation," said an official.
Officials avoided a question on the issue of whether the debt relief was enough.
"Egypt has, in my view, a very good perspective of access to private capital markets and it is important to future economic dynamism of the Egypt, and it is something that we know that the economic leaders in Egypt want to strengthen," an official said when asked why the country's total debt is not cancelled.
In his speech greatly expected Thursday, Obama is designed to present a coherent approach to deal with the turmoil that swept the region and the decades interspersed with American policy unprecedented.
Part of this approach include stimulating economic fundamentals to stimulate democratic reform.
"... "We know our study of the past that a successful transition to democracy depend in part on strong foundations for prosperity, and to strengthen economic growth is an important means of strengthening a democratic transition," an official said.
PUSH ECONOMIC
The United States would form "Egyptian-American, and Tunisian-American Enterprise Fund" to promote private sector investment, the White House said in a statement laying down some of its proposals.
Washington also works with the allies to reorient the European Bank for Reconstruction and development support the Middle East region and North Africa, just as he helped the countries of Central and Eastern Europe.
US authorities are concerned about the Economic Outlook in Egypt and Tunisia, after the democratic revolutions swept away long-autocratic decision.
Growth forecasts have been revised downward by 1% in Egypt and the growth of gross domestic product in Tunisia should be close to zero this year, the White House said.
The White House wishes to send a message to other countries in the region that they, too, could benefit from economic support if they are pursuing a democratic path.
"... Part of the objective of this economic program aims to strengthen not only positive changes in Egypt and the Tunisia, but a positive model that can empower and encourage democratic change and economic reforms in other parts of the region""an official said."
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