Egypt to receive $2 bn loan from Libya: Finance ministry source

Ahram Online, Thursday 11 Apr 2013

Libya will extend $2 billion interest-free loan to Egypt in effort to bolster latter's waning foreign-currency reserves, according to source at Egyptian foreign ministry

Egypt to receive $2 bn interest-free loan from Libya
(Photo: Reuters)

Egypt will receive a $2 billion loan from the Libyan government after signing an accord on Wednesday evening aimed at boosting the national economy and bolstering Egypt's falling foreign-currency reserves, which currently stand at $13.4 billion, a finance ministry source has told Ahram Online.

Egypt will pay back the interest-free loan over five years with an additional three-year grace period, according to the source who preferred anonymity.

The loan is expected to be delivered next week, coinciding with a recent Qatari pledge for $3 billion in financial aid to Egypt, official news agency MENA reported on Wednesday.

On the same day, a Central Bank of Egypt (CBE) source told Al-Ahram's Arabic-language news website that Egypt planned to sell Qatar dollar-denominated treasury bonds worth a total of $3 billion. Egypt will pay back the debt to Qatar at interest rates ranging between 3 and 4 percent.

Last month, Libya's General National Congress denied reports that the CBE would receive a $2 billion deposit from the Libyan government, news of which had followed the arrest in Cairo of three former Libyan officials linked to the Muammar Gaddafi regime.

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