The Central Bank of Egypt (CBE) has received a US$3 billion Qatari deposit for the purchase of Egyptian bonds.
CBE sub-governor, Nidal Assar, said: "Qatari deposit will remain at the CBE until the Ministry of Finance prepares the procedures to issue the bonds to Qatar, which will mature in three years with an interest rate of rate of 3.5%."
Go deeper with GlobalData
The Qatari government has promised to buy Egyptian bonds following a visit by Prime Minister Hesham Qandil to Doha in April 2013
The state has already lent Egypt US$5 billion since President Muhammad Mursi took office last July.
Qatar had asked for 5% interest and a maturity of 18 months on the funds, but Egypt was negotiating to get the terms improved, an Egyptian official involved in the talks said.
Economist Rashad Abdo said: "The terms of these bonds must be revealed to the public. Of course there will be an effect on the economic problems as the foreign currency reserve will increase and the ‘revolution of the hungry’ will be delayed.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData"Egyptian officials are trying to improve their image in front of the IMF and their ability to pay other debts, and to beef up foreign currency reserves to become eligible for the loan, but "it won’t solve the general economic problems as there is always a lack of visibility with this government."
