As the much needed IMF loan still hangs just out of reach, other Arab nations are helping the near destitute Egypt. Qatar and Libya have given the North African country a $5-billion cash boost. In addition to the $5 billion that was previously given, Qatar will provide an addition $3 billion while providing gas to Egypt as needed for the hot summer months.
The Qatari capital injection comes on the heels of Libya announcing that it would give Egypt $2 billion to support its economy. The pledge followed a decision by Egypt’s prosecutor general to extradite to Libya two former regime officials wanted on charges of corruption. In addition to the cash Libya will also provide Egypt oil while Egypt’s Arab Contractors Co. will reportedly be given Libyan projects worth over $400 million.
Egypt has been trying to rustle up support from various factions: Italy, Germany, and India most recently. Other creative financial mechanisms to shore up funds came from its attempt to sell $1 billion Islamic bonds (sukuk). Financial problems are not the only problem the post-revolution country faces. Its energy sector is taking hard blows (Egypt Braces for Power Shut Down).
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