US offers Egypt budget aid after IMF assurances

President Morsi (right) has assured John Kerry that he plans to "complete the IMF process". Credit: AA/ABACA

The US Secretary of State John Kerry has announced that Egypt will receive $190 million in budget aid after Egyptian President Mohamed Morsi agreed to new austerity measures.

Morsi's administration has said it wants to reopen talks with the IMF on a $4.8 billion loan which was agreed in principle last November but suspended at Cairo's request following street unrest.