CAIRO (AFX) - Israel has emerged as
the first country in the region to benefit from the war
on Iraq and is lined up to receive 10 bln usd in
assistance under a US emergency bill to cover costs tied
to the conflict.
Iraq itself will have to wait until security improves
to receive goods contracted under the UN "oil-for-food"
programme, the lifeline for 60 pct of the 25 mln Iraqis
before its suspension on March 17.
US president George Bush on Tuesday unveiled a
spending request of 74.7 bln usd to cover the war's
costs, including rewards to 19 key US allies in the
Middle East and other partners in the global war on
"terrorism."
If approved by Congress, Israel will receive the
lion's share, with one bln usd in military financing and
additional loan guarantees of nine bln usd.
Among the rewarded Arab states, Jordan stands to gain
more than 1.1 bln usd -- 700 mln to offset the economic
effects of the war with neighbouring Iraq and 406 mln in
military aid.
Jordan's economy is expected to suffer the most in
the region for the duration of the war because overland
shipments of cut-price Iraqi oil stopped after war broke
out on March 20, forcing the country to draw on its
reserves.
Saudi foreign minister Prince Saud al-Faisal has said
the kingdom will provide Jordan with oil, but "not at
preferential prices."
Egypt is set to receive 300 mln usd under the US war
package to assist its economy, of which a portion could
be used to secure up to two bln usd in loan guarantees.
War is taking a heavy toll on Egypt's tourism, the
country's top hard currency earner, with industry
executives reporting average hotel occupancy at 30 pct,
down from the normal 80 pct for the spring season.
Bush has also asked lawmakers to approve some 3.5 bln
usd in aid to put Iraq back on its feet, including
nearly half a billion for oil field repairs.
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