Qatar agrees to convert $2 bn into Egypt bonds: Reports

Ahram Online, Monday 9 Sep 2013

Hesham Ramez, governor of the Central Bank of Egypt, says Doha approved the conversion of $2 billion into Egyptian bonds, several Egyptian newspapers and evening talk shows report Monday

Hesham Ramez (Photo: Al-Ahram)


 The Qatari government has agreed to convert the $2 billion it had deposited in the Central Bank of Egypt (CBE) into bonds, CBE governor Hesham Ramez  reportedly said on Monday. 
The funds would be converted into bonds in a week's time, several Egyptian newspapers and evening talk shows reported. 

Last week, the Qatari government requested the conversion be delayed; with CBE officials saying Egypt was ready to repay the $2 billion "within days." 

Cairo's relations with Doha have deteriorated since the Egyptian army deposed president Mohamed Morsi on 3 July following mass protests against his rule. Qatar has firmly backed the government of Morsi, who hails from the Muslim Brotherhood, providing Egypt with some $7.5 billion during his brief one-year tenure. 

Saudi Arabia, the United Arab Emirates and Kuwait have stepped in as Egypt's new patrons since Morsi's ouster, pledging a total of $12 billion in loans, grants and fuel shipments. Of that, $5 billion have already arrived. 

In May, Egypt converted $2.5 billion of the Qatari loans into 18-month bonds at 4.25 percent interest, and on 1 July it converted another $1 billion into three-year bonds at 3.5 percent interest. The bonds were listed on the Irish stock exchange. 


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