Egypt Says Saudi Arabia May Buy T-Bills for Aid Package

Saudi Arabia will provide Egypt with an aid package that may include a three-year deposit or the purchase of treasury bills and bonds, according to Egyptian Prime Minister Kamal el-Ganzouri.

Planning and International Cooperation Minister Fayza Aboulnaga said in an interview that the package will include a $1 billion deposit and $750 million to buy treasury bonds. A Saudi delegation will visit Egypt to discuss details, she said.

Today’s announcements came after Aboulnaga met Saudi Finance Minister Ibrahim Al-Assaf at a conference this week in Morocco. The kingdom has so far given Egypt $500 million out of almost $4 billion of aid pledged after last year’s popular revolt that ousted Hosni Mubarak.

Aboulnaga said she expects the country’s foreign currency reserves to start increasing in May, the state-run Middle East News agency reported. Egypt’s net international reserves have been decreasing since last year’s uprising and are down more than 50 percent.

Egypt has requested a $3.2 billion loan from the International Monetary Fund, part of support sought to boost an economy that contracted last year.

To contact the reporters on this story: Abdel Latif Wahba in Cairo at alatifwahba@bloomberg.net; Mariam Fam in Cairo at mfam1@bloomberg.net

To contact the editor responsible for this story: Alaa Shahine at asalha@bloomberg.net

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