Turkey to provide Egypt with $2 billion in finance

Reuters, Sunday 16 Sep 2012

Egyptian finance minister says Ankara has agreed to a financing package but cannot yet say if it include direct budget support

Turkish PM Erdogan
Turkish PM Recep Tayyip Erdogan looks at paintings of Egyptian defence ministers from the last century in Cairo (Photo: Reuters)

Turkey has agreed during a visit by Egyptian officials to Istanbul to provide Egypt with a $2 billion financing package, Egypt's finance minister said on Saturday.

Egypt's new government has been seeking foreign help to plug twin deficits in its budget and balance of payments that have mushroomed since last year's popular uprising.
Last month it formally asked the International Monetary Fund for a $4.8 billion loan.
Momtaz El-Said said he could not yet say whether the Turkish financing would include any direct budget support.
"We agreed on $2 billion in financing, but the details on how it will be structured have not yet been worked out yet," he told Reuters by telephone.
Turkey's embassy in Cairo said the $2 billion package aimed to strengthen Egypt's foreign currency reserves and support investment in infrastructure. Half would be in the form of bilateral loans.
El-Said and presidential assistant Essam El-Hadad discussed the package with Turkish Deputy Prime Minister Ali Babacan in a meeting in Istanbul, the embassy said in an emailed statement.
Qatar has promised Egypt $2 billion in loans to support the budget and on 6 September it pledged to invest $18 billion in Egyptian tourism and industrial projects over the next five years.
U.S. officials have said the Obama administration was close to a deal with Egypt's new government for $1 billion in debt relief, and last week senior executives of around 50 U.S. corporations visited Egypt to discuss new investments.
Egypt's is also in talks for additional budget support worth about $1 billion from the World Bank and the African Development Bank. 
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