Egypt repays Qatar final $1 bln in outstanding debt: CBE governor
Ahram Online, , Friday 1 Jul 2016

Egypt has repaid $1 billion to Qatar, the last batch in a $3 billion debt owed to the Gulf country, Egypt's central bank governor Tarek Amer announced on Friday.

In statements to the state-owned MENA news agency, Amer said the central bank repaid the entire amount borrowed by Cairo from Doha – at an interest rate of 3 to 4 percent – against treasury bonds offered by Egypt to Qatar during the rule of ousted Islamist President Mohamed Morsi.

The bonds were covered by the Qatari National Bank and listed on the Irish stock exchange.

Amer affirmed Egypt's commitment to repaying its all its foreign debts, stressing that Egypt has not and will not fail in repaying its debts.

Qatar, a supporter of Muslim Brotherhood rule in Egypt, aided Egypt with billions of dollars in deposits, grants and energy products during Morsi’s one year in power.

Relations between the two countries deteriorated due to Doha's opposition to Morsi's ouster in 2013, with Egypt paying back the loans in installments ever since.

On Thursday, the governor said that Egypt would also soon repay $800 million owed to the Paris Club nations.

According to the central bank, Egypt owes the Paris Club around $3.55 billion dollars in total.

The scheduled payments will be made on time regardless of the strain on Egypt’s foreign currency resources, Amer assured last March.

Egypt’s foreign currency reserves have dwindled to $16.5 billion, down from $36 billion on the eve of the revolution, as the country’s main sources of hard currency income have been hit by domestic political turmoil, security concerns and the slowdown in the global economy.