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FINANCIAL NEWS
Saudi awards USD430m aid package to Egypt
10 Jun 2012
(MENAFN) Saudi Arabia approved a USD430 million aid package for Egypt, as the cash strapped country is struggling to plug its growing budget deficit, Reuters reported.
The Gulf kingdom will also allow Egypt to use a USD750 million line of credit to import oil products. Earlier this month, Saudi Arabia awarded a separate USD1.5 billion to Cairo as direct budget support.
The aid, which will be provided through the Saudi Fund for Development, is part of a package that Saudi Arabia announced a year ago to support the country’s troubled economy in the wake of an uprising that ousted President Hosni Mubarak.
The political unrest pushed away tourists and foreign investors, which are vital sources of foreign currency for the country.
Economists estimated Egypt to need a minimum of USD11 billion over the next year to avoid a balance of payments crisis and a potential devaluation of its currency.
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