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UAE offers $1 billion deposit to Egypt's central bank: Emirati news agency

Ahram Online , Monday 22 Aug 2016
Central Bank of Egypt
Central Bank of Egypt's headquarters is seen in downtown Cairo, Egypt March 8, 2016 (Reuters)
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Views: 4395

UAE has offered a deposit worth $1 billion to the Central Bank of Egypt (CBE) lasting for six years, Emirati news agency WAM reported on Monday, a move that aims at alleviating Egypt's dollar crisis.

"This support comes in the framework of cooperation and strategic coordination between the two countries and out of the UAE's firm position supporting Egypt and its brotherly people," WAM stated.

The deal was signed by Abu Dhabi's Fund for Development's General Director Mohammed Saif Al-Suwaidi and CBE's governor Tarek Amer.

Egypt, which relies heavily on imports, particularly foodstuffs, has been suffering an acute shortage of US dollars in the wake of political and security unrest following the 2011 revolution which has discouraged tourists and foreign investors, two major sources of hard currency.

Last April, the UAE pledged $4 billion to Egypt, half as a deposit in the central bank and the other half in investments in developmental projects.

Egypt reached a staff-level agreement with the International Monetary Fund (IMF) for a $12 billion fund facility over a three-year period to support the ailing economy.

IMF mission chief Chris Jarvis previously told Ahram Online that "all IMF-supported programmes have to be fully financed."

"In Egypt’s case, we would be looking for commitments of around $5 billion to $6 billion from bilateral creditors before the programme is brought to the board so that we can be sure that the programme is fully financed."

Last week, Egypt's Prime Minister Sherif Ismail said his country is in talks with friendly countries over possible financial aids to meet the programme's terms over the coming three years, Ahram Arabic website reported.

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