Egypt rejects $2bn Qatari fund for bonds

Egypt rejects $2bn Qatari fund for bonds
Thu Sep 19, 2013 17:57:09

Egypt has returned to Qatar 2 billion dollar that Qatar had deposited with Egypt's central bank for bonds.

The move came after negotiations to convert the funds into three-year bonds broke down, Reuters quoted central bank Governor Hisham Ramez as saying on Thursday.

Qatar sent Egypt $3 billion in May, and it converted $1 billion into three-year bonds.

While Egypt was engaged in the long negotiations process with the IMF in hopes of getting a loan to save the faltering economy, Qatar pledged a 3bn dollar lifeline to Egypt in the form of bond deposits. Qatar has said that the aid was unconditioned.

Qatar was also supposed to supply Egypt with Natural gas to cover the country's shortage which has been causing regular electricity outages.

The Persian Gulf state has previously provided Egypt with 7.5 billion dollars in aid during the year Morsi was in power.

Qatar’s alleged support to the Muslim Brotherhood and its attempt to acquire assets in Egypt including the Suez Canal has caused a public and media outlash against Qatar. Many critics said that Qatar was trying to buy influence in the Arab World's most populace nation.

However, the mutual relations between two states deteriorated after the Egyptian army deposed President Mohamed Morsi on July 3.


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