(AFP Photo)
Egypt is in the process of negotiating with Saudi Arabia over a $500m loan to help close its budget deficit, with talks to conclude over the coming days, Minister of Planning and International Cooperation Amr Darrag said on Monday.
Darrag told Reuters that, “the loan will come as part of a Saudi finance package provided to Egypt, lent at 3% interest, and set to be paid back over a period of 8 years, after a 2-year initial grace period.”
Egypt has been seeking to close its budget deficit as it negotiates with the IMF over the country’s pending $4.8bn loan. Unlike loans accepted from other Arab countries, Egypt will only be able to secure an IMF loan if it successfully implements strict subsidy reforms and imposes new tax increases, as a means of increasing revenue and cutting spending.
Translated from Al-Borsa Newspaper
