Published: July 11, 2013
Funds vital to prevent further economic deterioration.
The governments of Saudi Arabia and the United Arab Emirates have pledged a total of US$8bn in aid to Egypt.
According to Saudi finance minister Ibrahim Alassaf, speaking to reporters, his country’s US$5bn package will consist of a US$2bn central bank deposit, US$2bn in energy products and US$1bn in cash.
The UAE is offering a US$1bn grant and a US$2bn loan, its state news agency reports. The loan will take the form of an interest-free deposit with the central bank.
Egypt is suffering from plummeting foreign currency reserves, raising inflation and a rapidly widening budget deficit. These funds will provide much-needed, if temporary, relief.