Egypt to borrow $2.5 billion from Islamic bank and sell treasury bills to Arab governments
A limited World Bank loan is also on the table, as the country's finance head visits Washington for annual meetings of global bodies
Ahram Online, Sunday 25 Sep 2011
Arab governments may soon buy Egyptian treasury bills to help the government reduce the highest borrowing costs it has faced since 2008, Egypt's state news agency MENA reported Deputy Prime Minister Hazem El-Beblawi as saying.
Egypt is in talks with Saudi Arabia and the United Arab Emirates to buy the instruments, Beblawi said while visiting Washington D.C. to attend the annual meetings of the International Monetary Fund and World Bank.
According to Beblawi, also's Egypt's Minister of Finance, there is not enough competition to drive interest rates down.
Futher help will come from the Islamic Development Bank, which will provide Egypt with $2.5 billion over the next three years to help the economy recover from the effects of the January 25 Revolution, the bank’s President Ahmad Mohamed Ali told news agencies.
Egypt has reached an agreement to borrow US$430 million from the World Bank to develop Egypt's railway and agricultural systems, MENA also reported. But it noted that Egypt has not requested a new loan from the IMF, after turning down a $3 billion offer in June.