CAIRO: The Islamic Development Bank said on Wednesday it will grant Egypt a $2.5 billion loan to finance infrastructure projects and as insurance for imports and exports. The three year package will contribute to projects in electricity, roads, railways and education, the Saudi-based bank said in a statement. The money will also be used for a 650-megawatt power station. Egypt has been struggling to put its economy back on track after a popular uprising toppled president Hosni Mubarak in February. During three weeks of anti-regime protests that started on January 25, the country was practically paralyzed and its lucrative tourism industry badly affected. Earlier this month, the International Monetary Fund granted Egypt a loan of $3 billion over 12 months. The IMF loan grants Egypt a grace period of three years and three months followed by five years to pay it back. The economy has also been affected by neighboring conflicts. Tens of thousands of Egyptian workers in Libya, who used to send money back to their families in Egypt, have fled the fighting between loyalist troops and rebels. Egypt estimates it needs between $10 and 12 billion in international funding to keep it going until mid-2012.
