Qatar extends $2.5bn lifeline to Egypt - FT.com

Qatar extends $2.5bn lifeline to Egypt - FT.com

Qatar swoops in to buffer against the impact of Morsi's economic mismanagement:

Sheik Hamad bin Jassem al-Thani, Qatari prime minister, said his country had given Egypt a $500m grant and another $2bn loan to help control the currency and support the dwindling foreign reserves, a day after Cairo resumed talks for a crucial $4.5bn loan from the International Monetary Fund.

“That is a decent amount of money. It will stabilise the foreign exchange market a little bit,’’ said Mohamed Abu Basha, Egypt economist at EFG-Hermes.

“It will allow the government a breathing space where they do not have to worry a lot about the currency during the IMF negotiations.’’

The Qataris — who have pledged at least $10bn to Egypt and have now delivered some $2bn before this — mostly as deposits in the Central Bank. One day they will cash in on all of this aid.