(AFP File Photo)
Saudi Arabia is currently reviewing a report received from Egypt detailing the financial needs of the latter, according to Ahmed Qatan, Saudi Arabia’s ambassador to Cairo.
Saudi Arabia agreed to provide Egypt with $5bn in aid shortly after the ouster of President Mohamed Morsi on 3 July following a series of popular protests.
Egypt’s economy has suffered as a result of political turmoil which spread throughout the country following the outbreak of the January 25th revolution which removed President Hosni Mubarak from power.
Egypt’s government has suffered from a $3.2bn monthly budget deficit since last January.
Prime Minister Hazem El-Beblawi recently put forth a “Marshall Plan” to the Gulf countries in an attempt to secure aid which would help reduce the pressure currently being placed on the Egyptian economy.
Qatan told Reuters: “What is happening now is that El-Beblawi is informing the three concerned parties….Saudi Arabia the United Arab Emirates and Kuwait, of Egypt’s financial needs for the upcoming year.”
“All of these issues are being closely followed by the necessary government agencies within Saudi Arabia”, he added.
The three Gulf countries pledged to provide Egypt with a total of $12bn in aid since last July, $5bn of which has so far been delivered.
Egypt’s transitional government stated that it will avoid implementing austerity measures, seeking instead to stimulate growth by pumping money into the economy.
The government further seeks to avoid implementing unpopular policies as a means of addressing the budget deficit, such as raising taxes or decreasing food and energy subsidies, which combined consume nearly half of Egypt’s annual budget.
Translated from Al Borsa
Link: http://goo.gl/hn2Vlg
