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G-8 Plans Gifts to Development Banks to Fund “Arab Spring” Nations

Members of the G-8 nations meeting in Deauville, France, deferred making specific decisions about supporting nations caught up in the so-called “Arab Spring,” but each nation committed to contributing to development banks that will in turn provide funding to individual states pursuant to details to be decided later. The fund is seen as incentive for the Middle Eastern nations hit by the unrest to move toward democratization. Egypt and Tunisia received the bulk of the gifts already earmarked. The World Bank designated $4.5 billion for Egypt over two years and $1.5 billion for Tunisia over the same period. The United States last week announced it would offer Egypt $1 billion in debt relief and another billion dollars in loan guarantees. The G-8 nations insist that the recipient nations will have to demonstrate actual reforms and transparency. French President Nicolas Sarkozy said the total fund will ultimately be boosted by another $10 billion from the G-8 nations and $10 billion from Arab governments.