Egypt Expects More Gulf Aid Next Year

Egypt expects as much as $9 billion in additional financial aid from oil-rich Gulf nations, a Finance Ministry official said Wednesday.

The Egyptian government has already opened talks with Saudi Arabia and United Arab Emirates (UAE) on the terms of a new aid package that would include loans and grants, the official, requesting anonymity, told Anadolu Agency.

Egypt has already received $12 billion in Arab aid since the July 3 ouster of elected president Mohamed Morsi by the military establishment.

“We expect to receive $5 billion from Saudi Arabia and $4 billion from the UAE,” the official said, adding that the loans would bear zero interest and five-year repayment periods.

“These packages will help prop up Egypt’s foreign reserves,” he added.

The previous aid package from the Gulf has helped the Egyptian government control a mushrooming budget deficit and launch a $4.1 billion economic program ostensibly aimed at reviving the economy.

The Gulf aid has also helped reduce Egypt’s fuel import bill by $1.8 billion over the last three months, according to a recent Finance Ministry report.

Last year, Egypt coughed up some 128 billion Egyptian pounds – representing some 20 percent of its overall budget – to subsidize fuel for almost 90 million citizens.

Source: World Bulletin