Egypt central bank (Photo: Reuters)
Egypt has returned to Qatar $2 billion that the Gulf state had deposited with Egypt's central bank, after negotiations to convert the funds into three-year bonds broke down, central bank Governor Hisham Ramez said by telephone on Thursday.
Qatar had sent Egypt $3 billion in May, of which it converted $1 billion into three-year bonds.
Cairo's relations with Qatar deteriorated after the Egyptian army deposed President Mohamed Morsi on July 3 following massive uprisings flocked to the streets nationwide demanded the Islamist President to leave.
Qatar had been a firm backer of Morsi's Muslim Brotherhood and lent or gave Egypt $7.5 billion during the year he was in power.