CAIRO: Egypt will receive a $5 billion deposit from the United Arab Emirates and Saudi Arabia to compensate for a potential decline in Egypt’s foreign reserves after it pays back $2.5 billion worth of deposits to Qatar at the beginning of November, a high-ranking government official told Al-Masry Al-Youm Sunday.
On Oct. 1, Egypt paid $500 million back to Qatar, and will return $2.5 billion in November, Hisham Ramez, governor of the Central Bank of Egypt (CBE), told Reuters Saturday.
During the one-year rule of deposed President Mohamed Morsi, the Egyptian government borrowed over $7 billion from Qatar. Since Morsi’s ouster, Egypt has been paying back the debt, which should be completely resolved with the $2.5 billion payment next month. However, this will likely hurt Egypt’s foreign reserves.
“Egypt will receive the Gulf deposit by the end of October,” the source said. Noting that there are talks with Saudi Arabia to obtain a deposit worth $2 billion.
According to the official, Egypt held talks with UAE Minister of State Sultan Al-Jaber during his visit to the country ahead of Eid Al-Adha. In the talks, Egypt discussed the UAE compensating the Qatari deposit, in addition to other dues Egypt still must repay, including a $700 million semiannual installment to the Paris Club.
The latest Saudi and Emirati offerings come after a string of contributions to Egypt by the Gulf states following the events of June 30.
Last month, the UAE offered an $8.6 billion loan to Egypt to finance the purchase of petroleum products until September 2015.
Also, following the Morsi ouster, Saudi Arabia, Kuwait and the UAE pledged $12 billion in cash, deposits and petroleum shipments to support the Egyptian economy.