Saudi Arabia to give Egypt $5 billion in aid

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Saudi Arabia to give Egypt $5 billion in aid

Post by DJKeefy »

Following military-backed ouster of president Morsi, Saudi finance minister tells Reuters that oil-rich kingdom will send $5-billion aid package to Egypt on Tuesday.

Saudi Arabia approved a $5 billion aid package to Egypt on Tuesday comprising a $2 billion central bank deposit, $2 billion in energy products, and $1 billion in cash, the Saudi Finance Minister Ibrahim Alassaf told Reuters.

The aid comes after the Egyptian army overthrew President Mohamed Morsi of the Muslim Brotherhood.

Source: http://english.ahram.org.eg/News/76115.aspx


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Re: Saudi Arabia to give Egypt $5 billion in aid

Post by DJKeefy »

That's $8 billion now in aid from Saudi and the UAE :)
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Re: Saudi Arabia to give Egypt $5 billion in aid

Post by Hafiz »

Some newspapers are saying that its now $US12 billion. So many new rich friends.

The Saudi's and UAE didn't much like the brothers (for reasons which only an Islamic scholar would understand) and, therefore have only now reappeared with chequebooks previously well hidden from Egyptian view.

The previous 'generosity' of Qatar (cash deposits and remember their proposal to spend 5 or was it 15 billion on Mediterranean tourist development) is likely to disappear for the same reason reversed. Again you would need decades of education to understand this - and I don't.

The people who know better say that the IMF money (much smaller than the recent 'gifts') that has been negotiated, and not yet agreed, is not only important as cash help but would give the stamp of approval which would then improve the credit rating and give private international investors more confidence. Meanwhile these Arab cash handouts are really more of a holding pattern rather than a way forward.

At the moment, and until the IMF agreement, Egypt's credit rating is so bad that no sensible international bank would loan it money and, as a result, recent government bonds have been largely taken up by domestic investors and domestic banks and this can't go on indefinitely. Insuring debt to the Egyptian government against default is, I think, at about 9% which is sort of Greek range.

Egypt's government debt is not so large, its just that there is no international confidence.

Assume that the Saudi and UAE 'loans' come with strings although god knows what they are.

The Saudi and UAE announcements come so quickly on the military takeover that you wonder what was going on behind the scenes.

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Re: Saudi Arabia to give Egypt $5 billion in aid

Post by DJKeefy »

$12bn total aid pledged by Gulf states should assist Egypt’s beaten economy if properly used, experts say.

Kuwait, the oil-rich US ally, has announced an aid package of $4bn to Egypt, a day after neighbouring United Arab Emirates (UAE) and Saudi Arabia pledged a total of $8bn in aid, one week after the ouster of Islamist president Mohamed Morsi.

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Re: Saudi Arabia to give Egypt $5 billion in aid

Post by Hafiz »

Thanks. Missed other post.

Wonder what the result would be if you subtracted some or all of the Qatar deposits and promises (which may now not arrive) against these new promises: but maybe thats a bit cynical.

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