Egypt Signs $1 Billion Turkish Loan Deal

Egypt signed a deal on Sunday to loan $1 billion from Turkey, half of the aid package Ankara promised Cairo earlier this month, Egypt’s state news agency reported.

President Mohamed Morsi signed the loan agreement with Turkish Prime Minister Recep Tayyip Erdogan after giving a speech at Turkey’s ruling AK Party conference.

“President Mohamed Morsi and Prime Minister Recep Tayyip Erdogan agreed on signing a loan worth $1 billion dollars from Turkey,” MENA state news agency said, quoting Egypt’s finance minister. It did not give further details of the agreement.

In his conference speech, Morsi spoke of strong regional policy ties with Turkey and praised it for being the first country to back the Egyptian revolution which toppled Hosni Mubarak and led to the Muslim Brotherhood winning power.

Officials of Morsi’s Freedom and Justice Party have said they do not look to Turkey and its AK Party as a political model.

However, analysts say Egypt’s new Islamist rulers are taking notes from Turkish party’s success in building a regional economic powerhouse which has delivered strong growth.

Battered by months of political turmoil, Egypt has been seeking to boost investor confidence in its economy.

Donations and loans from the International Monetary Fund, Gulf states and other countries have played a role in raising confidence.

Source: Reuters