Egypt returns $2 bn to Qatar after talks to securitise it fail

Reuters, Thursday 19 Sep 2013

Money returned after talks on converting $2 billion into three-year bonds break down
Egypt central bank (Photo: Reuters)

Egypt has returned to Qatar $2 billion that the Gulf state had deposited with Egypt's central bank, after negotiations to convert the funds into three-year bonds broke down, central bank Governor Hisham Ramez said by telephone on Thursday.

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

Cairo's relations with Qatar deteriorated after the Egyptian army deposed President Mohamed Morsi on July 3 following massive uprisings flocked to the streets nationwide demanded the Islamist President to leave. 

Qatar had been a firm backer of Morsi's Muslim Brotherhood and lent or gave Egypt $7.5 billion during the year he was in power.

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