Share

$2bn Qatar lifeline for Egypt

Cairo - Qatar will deposit $2bn at the Egyptian Central Bank in an effort to help support an economy battered by a year and a half of political turmoil, an Egyptian presidency statement said on Saturday.

Egypt's foreign reserves began a steep decline last year when a popular uprising sent the economy into a tailspin and led the central bank to start selling dollars to prop up the country's pound.

The economy faces a looming balance of payments crisis and high state borrowing costs, and experts say financial aid is urgently needed to avoid currency devaluation.

"The state of Qatar has decided to deposit $2bn at the Egyptian Central Bank," said the presidency statement.

The emir of oil-rich Qatar, Hamad bin Khalifa al-Thani, held talks with newly elected Islamist President Mohamed Mursi during a visit to Cairo on Saturday. It was the first trip by a Gulf leader since Mursi was sworn in on June 30.

Mursi's new cabinet will have to decide whether it should implement new and potentially painful austerity measures to help stabilise government finances and secure foreign financial help.

Political unrest has chased away tourists and foreign investors and prompted government employees to strike for higher wages.

A mission from the International Monetary Fund (IMF) will arrive in Cairo this month to resume talks with the government over a $3.2bn loan.

Political tensions have been delaying the unlocking of aid as the IMF demanded that any loan gets broad political support.

Egyptian government expects a growth rate of 3.5% to 4% in the 2012-2013 fiscal year.

Gulf governments have offered some aid, including a Saudi $1bn deposit at the central bank earlier this year.

* Follow Fin24 on Facebook, Twitter and Google+.



We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.93
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.44
+0.1%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.1%
Platinum
906.59
+1.1%
Palladium
1,012.66
+1.1%
Gold
2,221.01
+1.2%
Silver
24.85
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders