Iraq Declines To Give Egypt $4 bln Deposit..Cancels Petroleum Deal
The Iraqi government has officially declined to grant Egypt a deposit at value of $ 4 billion. The government said the reason behind their decline is that degrading Egypt’s credit rating.
Ambassador Gamal Bayoumi, Secretary-General of Arab Investors Union, said the Iraqi government on Monday sent two state letters to the Egyptian cabinet and its economic group; justifying its refusal to grant Egypt the $4 billion deposit on account of degrading Egypt’s credit rating pursuant to a large number of international credit rating agencies.
Bayoumi believed that the Iraqi government’s action came due to international political pressures, pointing out to Syrian regime’s allies, in order not to give Egypt any financial aids to revive its ailing economy. He elaborated that Egypt’s relations with the neighboring countries went poor. So after Iraq has refused to grant Egypt that deposit, along with worsening the relations with the UAE and KSA, Egypt has no other choices except Kuwait, Bayoumi said.
On the other hand, he suspects the possibility that Kuwait becomes the winning station to rescue Egypt’s cash reserve, for political considerations in addition their respect for the former president, Mohamed Hosni Mubarak.
In his statements to “Amwal Al Ghad”, Bayoumi revealed that the economic group in the Egyptian cabinet on Monday afternoon recalled the economic advisor in the Iraqi Embassy to Cairo so as to look into this abrupt decision by the Iraqi government.
On the same context, a source, refused to mention his name, stated that Iraq has canceled a deal with the Egyptian government, which is supplying Egypt with 4 million barrels of petroleum monthly. Egypt was supposed to receive the first shipment of the Iraqi crude oil at the beginning of April 2013, according to a deal made during the Egyptian delegation visit to Iraq.
It is worth mentioning that the Egyptian Minister of Planning and International Cooperation, Dr Ashraf Al Araby, headed to the Iraqi capital of Baghdad several days ago. The minister was topping a state delegation to Iraq to discuss the details concern granting Egypt a $ 4 billion deposit.
