Qatar Loans Egypt $2 Billion for Struggling Economy

Cairo, August 12 (QNA) - Egypt stocks finished Sunday trade at a slight increase with the main EGX30 benchmark gaining 0.21 per cent to sit at 4,971 points. Investors continue to act overly cautious as the recent wave of unrest the country experienced in the past few weeks drove investors away. The Qatar government has loaned Egypt $2 billion in an effort to assist Cairo in bolstering its struggling economy, the official state-run Middle East News Agency (MENA) has reported . MENA reported that the loan was agreed to on Saturday during the first visit of HH the Emir of the State of Qatar Sheik Hamad bin Khalifa Al Thani to Egypt since the ousting of former President Hosni Mubarak in February 2011. The report said that HH the Emir of Qatar met with Egypt President Mohamed Morsi, in what many see as an effort to maintain positive ties with the wealthy Gulf country. Egypt s economy has suffered since dramatically since the popular uprising ousted the former regime. Egypt has asked the International Monetary Fund (IMF) for a $3.2 billion aid package, but talks with the financial body have stalled in recent months. Earlier this month, Egyptian government officials said they were looking to reboot talks with the IMF over the loan deal. Earlier this month, Egypt's Finance Minister Mumtaz al-Saeed told reporters that Egypt is interested in rebooting talks with the international financial body after they had dropped following uncertainty in the country. The deal is seen as vital to assist Egypt in being able to avoid a budget and balance of payments crisis as well as deliver more credibility to economic reforms to boost the ability to attract investors. "We have offered an invitation to the IMF delegation to visit Egypt in the coming period," Saeed said without specifying when exactly the visit will take place. "And there is a probability that the head of the IMF would also come in the visit," he added. Last month, IMF officials hinted that a loan agreement would not be made this year, sparking worries that Egypt s economic crisis could widen. According to a report by Bloomberg business news agency, "the IMF requires approval from the biggest party in parliament," the official said, speaking on the condition of anonymity because of the sensitivity of the talks. "It s disappointing, but at least it s been announced against the stabilization of reserves," Richard Fox, London- based head of Middle East and Africa Sovereigns at Fitch Ratings, said by phone to Bloomberg. "If they can maintain reserve levels and continue progress toward political transition it s not the end of the world. Still, the fact that things have been pushed back yet again isn t positive." The report comes less than two weeks after an aide to Egypt President Mohamed Morsi said the IMF deal was back on track.(QNA)