Qatar to aid Egypt with extra $2.5 billion
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Qatar to aid Egypt with extra $2.5 billion

Move aims to prop up Cairo's foreign currency reserves, which stand at a 'critical minimum' level

Qatari Prime Minister Hamad bin Jassem Al-Thani (photo credit: CC-BY-SA World Economic Forum, Wikimedia Commons)
Qatari Prime Minister Hamad bin Jassem Al-Thani (photo credit: CC-BY-SA World Economic Forum, Wikimedia Commons)

CAIRO (AP) — Qatar says it will increase its financial aid to Egypt by $2.5 billion, bringing its total assistance to $5 billion.

Qatari Prime Minister Sheik Hamad Bin Jassem Al Thani says his nation will loan Cairo an additional $2 billion and transfer another $500 million grant. He was speaking in Cairo Tuesday after a meeting with his Egyptian counterpart.

Qatar has already deposited $2.5 billion, helping to prop up Egypt’s foreign currency reserves. They stand now at $15 billion, and the country’s central bank warns that is a “critical minimum” level.

In parallel, Cairo is in renewed discussions for a $4.8 billion loan from the International Monetary Fund, aimed at helping cover a widening budget deficit and boost investor confidence in Egypt’s ailing economy.

Copyright 2013 The Associated Press.

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