Qatar Changes Their Minds to Covert US$2 bln Deposit into Bonds: CBE

The Central Bank of Egypt (CBE), Governor Hisham Ramez, said Qatar has changed their minds regarding the agreement terms so Egypt has Returned $ 2 billion to it, explaining that he did not understand the reasons, saying ‘we were paying 3.5% interest rate.

Ramez added that CBE will not be a party of the current political situation, asserting that CBE is respecting the agreements, as Egypt passed through the most difficult circumstances before, and succeeded to overcome them.

Ramez has pointed out that the Egyptian economy will not base on foreign aid and support, as the reserve is EGP 18.9 billion, pointing out that the CBE will receives $ 2 billion Kuwait deposit in the coming Tuesday 24/9/2013.

It is worth mentioning that On July 1, Egypt converted the $1 billion into three-year bonds at 3.5 percent interest and in May it converted another $2.5 billion of Qatari loans into 18-month bonds at 4.25 percent interest. The bonds were listed on the Irish stock exchange.

Cairo’s relations with Qatar deteriorated after the Egyptian army deposed President Mohamed Morsi on July 3. Qatar had been a firm backer of Morsi’s Muslim Brotherhood and lent or gave Egypt $7.5 billion during the year he was in power.

May, Egypt converted $2.5 billion of the Qatari loans into 18-month bonds at 4.25 percent interest, and on July 1 it converted another $1 billion into three-year bonds at 3.5 percent interest. The bonds were listed on the Irish stock exchange.