CAIRO: Egyptian Finance Minister Samir Radwan announced that officials from the United Arab Emirates would be coming to Cairo later this month to discuss the details of a $3 billion aid package. He confirmed that the money had already been received when speaking with reporters yesterday. During a meeting between Egyptian Prime Minister Essam Sharaf and UAE's Minister of Presidential Affairs Sheikh Mansour bin Zayed al-Nahyan in Abu Dhabi on July 5, UAE President Sheikh Khalifa bin Zayed al-Nahyan called for $3 billion in aid to Egypt. The package would include a $1.5 billion Khalifa bin Zayed Fund for small and medium-sized enterprises, $750 in concessionary loans, and a grant of $750 million slated to fund housing and infrastructure projects, according to the UAE Foreign Ministry's press release. On July 3, the IMF offered Egypt a $3 billion loan package at an interest rate Radwan noted as “remarkable”; 1.5 percent, local reports stated. Egypt then declined the loan on July 9. According to the ministry of finance, after consultation between the Supreme Military Council and the ministry of finance, Egypt's budget was revised to project a deficit of 134.3 billion pounds, rather than the earlier projection of 170 billion pounds. In light of this, the ministry determined that it would be unnecessary to take the proposed loan from the World Bank or the IMF, and that Egypt could rely on the local market for aid. The ministry assured that relations between Egypt and the IMF, the World Bank, and other international organizations remained “excellent” and that Egypt would continue to seek advice from experts at these organizations. Qatar has also offered Egypt a $500 million grant for budgetary support, reports Arabian Business. This is in addition to $10 billion investment in Egypt that Qatar's Prince Sheikh Ahmad bin Khalifa al-Thani pledged in May, according to the official MENA news agency. On June 22, Sharaf signed a loan agreement and a memorandum with the Saudi Fund for Development. The agreement includes a $500 million loan to Egypt at an interest rate of two percent, a donation of $200 million, to be used on smaller and medium projects, and a loan to import Saudi products that are not hydrocarbons. Additionally, the Fund has agreed to loan Egypt an estimated $50 million to finance a power station in Banha, Egypt, according to Youm7.com. In May, the United Sates announced that it had asked Congress to set aside economic support funds amounting to $250 million and $1.3 billion of foreign military financing to support Egypt. According to a State Department statement, the US development finance body, Overseas Private Investment Corporation (OPIC), will provide $2 billion for private sector investment in the Middle East and North Africa region, focusing on smaller and medium-sized projects. On July 1, OPIC approved financing for small business loans in Egypt and Jordan amounting to $500 million, according to the OPIC website. The Ministry of Finance also announced that the US will relieve 33 percent of Egypt's debt over the next three years, an amount estimated at $3 billion. BM
