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Saudi Arabia to give Egypt $4 billion rescue package

MEMO | January 31, 2014

On Thursday, Egypt’s Al-Ahram newspaper quoted an unnamed ministerial source in the interim Egyptian government as saying that Prime Minister Hazem El-Beblawi’s visit to Saudi Arabia next Tuesday will result in Cairo receiving a $2 billion aid package, as well as petrol supplies valued at another $2 billion.

Egyptian government spokesman, Hani Salah said that El-Beblawi’s visit to Saudi Arabia will focus on the economic portfolio, as well as the discussion of a number of projects.

Last September, the governor of the Central Bank of Egypt, Hisham Ramez, announced that Cairo had received $1 billion from Riyadh and that his country would receive additional aid from Saudi Arabia, UAE, and Kuwait, who pledged to grant Egypt a total of $12 billion.

Riyadh had agreed at the end of last July to provide a package of aid to Egypt amounting to $5 billion, including $2 billion in the form of deposits in the Central Bank of Egypt, $2 billion in gas and petroleum materials and $1 billion in cash.

Gulf aid has contributed significantly to alleviating financial pressures on the Egyptian economy, which was severely affected by the unrest following the January 25th Revolution and the military coup last summer. Egypt is expected to reveal the details of a second economic stimulation drive over the next few days, according to a statement made by the Egyptian Ministry of Finance on Tuesday. This initiative aims to increase the country’s growth rate and restore investor confidence which plummeted after the July 2013 military coup.

January 31, 2014 - Posted by | Economics | , , ,

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