Egypt to get $5 billion in fresh aid from Saudi Arabia

CAIRO - Anadolu Agency

People shop at Al Ataba, a popular market, in downtown Cairo. REUTERS photo

A new package of Saudi financial aid to Cairo will be announced within a few days, a high-ranking Egyptian Finance Ministry official said Dec. 1.

The package amounts to $5 billion, the official, who spoke on the condition of anonymity, told the Anadolu Agency over the phone. He said negotiations between Cairo and Riyadh over the package lasted for a month and the package would be in the form of grants, a deposit at the Central Bank of Egypt and petroleum products.

The official added that the aid package is expected to include $1 billion in non-refundable grants.

“There is a government plan to use the new aid package in stimulating the economy and reviving stagnant economic sectors, particularly construction, tourism and investment,” the source said.

He added the stimulus plan would also involve a government drive to reduce unemployment and bring the budget deficit down to 10 percent during this fiscal year, from 14 percent last year.

Saudi Arabia had already offered Egypt $5 billion in financial aid following the ouster of elected president Mohamed Morsi by the army.