The World - News from March 8, 1987

Egyptian President Hosni Mubarak has rejected a U.S. offer to ease credit terms on weapons loans, U.S. officials said. The State Department declined to comment, but an official speaking on condition of anonymity confirmed that Mubarak had turned down the U.S. offer. The Egyptian Embassy declined to comment. Egypt currently owes the United States $4.5 billion for past weapons purchases. Under the U.S. offer rejected by Mubarak, the interest rate would go down to about 7.5%, and Egypt’s annual payments would drop to less than $400 million, congressional investigators estimate. Some officials believe Mubarak may be trying to get Washington to forgive the debt entirely.