Egypt secures financial aid from Qatar

11 April 2013

Financing could strengthen country’s IMF bid

Qatar is to extend $3bn in financial support to help Egypt’s struggling economy.

The announcement was made during a visit by some members of the Egyptian cabinet to the Qatari capital of Doha this week.

The funding will come in the form of bonds or as a deposit in Egypt’s Central Bank. It is in addition to a previously pledged investment of $18bn to be made by 2018 from the GCC state.

A total of $5bn has already been granted by Qatar since Egypt’s revolution two years ago.

The financial aid is much-needed as Egypt tackles falling foreign currency reserves and a widening budget deficit. Its credit rating has also been cut.

The North African country is still seeking to secure a $4.8bn loan from the International Monetary Fund (IMF).  It is thought the Qatari aid could help the Egyptian government’s bid to win the funding.

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