Egypt is to receive $2 billion Deposit from Saudi Arabia

It has just been announced by Sahar Nasr (International Cooperation Minister) that Egypt signed a deal with the central bank of Saudi Arabia for $2 billion deposit.

This deal was put in place at the time when Saudi’s king (Salman) was on a visit to Egypt. The deal also included plans for $16 billion investment fund. The proceedings of this deal was not announced.

Egypt is also trying to secure about $6 billion in bilateral financing which will be used to ensure a $2 billion lending programme and they’re hoping to get this funds from the International Fund.

It is not clear if the deposit from Saudi will be used towards the programme or when the deposit will arrive.

Egypt has also previously announced the approval of a Saudi grant ($2.5 billion) to be paid in tranches and it hope that its ally with Saudi and UAE will provide funds to the country especially to the programme they plan on investing.

IMF is willing to support Egypt in securing its financial needs but however, it needs assurances that the money promised to them by Gulf Arab will arrive in time (first half of the year).

With the support of IMF, Egypt is willing to explore international markets with a Eurobond issuance of about $3 billion to $5 billion.

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