Kingdom, UAE in Talks Over $5b Egypt Bailout

Egypt is discussing financial packages for budgetary and other support with Saudi Arabia and the UAE that could exceed a total of $5 billion based on figures initially proposed, Egyptian Finance Minister Hazem El-Beblawi said. He said he was discussing financing packages offered by Saudi Arabia and the UAE.

"We have received $500 million from Saudi Arabia. They are proposing a package. We are still in discussions. The package is much bigger," he said. "And also another package is being discussed with the UAE. There was a delegation from the Emirates here yesterday (Sunday), and we are finalizing. I would not discuss the exact proposal until approved by both parties," he added.

Asked about the value of the combined packages, he said: "When we were starting discussions we received ideas from different parties and the total amount was $5-7 billion." He then added it was "closer to $5 billion." The packages would cover a mixture of budgetary support and other financing, but he did not give details.

"We will be negotiating very soon a facility from the Arab Monetary Fund," he said, adding that this was "closer to half a billion" US dollars. He said Qatar and Kuwait had also voiced support but said these offers had not progressed till now. Moreover, he said that Cairo was open to "all sorts of cooperation" with the International Monetary Fund, which offered a $3 billion financing package earlier this year that Egypt then turned down in June.