Egyptian economy given US$2 billion boost by Qatar

Monday, 13 August 2012 07:25

Egypt’s President has said that Qatar will deposit US$2bn into the Egyptian Central Bank as part of an effort to help strengthen the country’s struggling economy

According to Egypt's official news agency MENA, the loan was agreed during the first visit to the country by Qatar Emir Sheik Hamad bin Khalifa Al Thani since the fall of former President Hosni Mubarak.

MENA said that Al Thani met with the recently-elected Egyptian President Mohammed Morsi whose Muslim Brotherhood group is believed to have close ties with Qatar ruling elite.

According to news agency Reuters, Egypt’s economy faces a looming balance of payments crisis and high state borrowing costs, while political unrest has scared off tourists and foreign investors.

Experts have said that financial aid was urgently required to help the country avoid currency devaluation.

Later this month an International Monetary Fund (IMF) mission will visit Cairo to resume talks with Morsi’s government over a potential $3.2 billion loan.