Saudi Arabia pledges $4 billion aid to Egypt

AFP, Saturday 21 May 2011

Military leaders thank the Kingdom for assistance package comprising long-term loans and grants

Saudi Arabia has pledged US$4 billion dollars in aid to Egypt in the form of long-term loans and grants, Egypt's military chief said on Saturday.

The official MENA news agency said Field Marshal Hussein Tantawi, the country's de facto ruler, thanked Saudi Arabia in a statement for "supporting Egypt's economy with approximately four billion dollars."

The aid comprises long-term loans and grants, the agency reported.

Egypt's economy, largely dependent on tourism, has taken a hit after a revolt that ousted president Hosni Mubarak in February, and an ensuing security vacuum and sectarian strife have hampered attempts to get it back on track.

The military has warned that further unrest could drastically damage the economy.

The United States has pledged to cancel up to US$1 billion in Egyptian debt and provide another billion in aid.

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