More money, more problems? Egypt returns another $500 million to Qatar
Reuters reported Tuesday that Egypt returned $500 million to Qatar December 2 after the Gulf peninsula "refused" to renew a former deposit it had made in Egypt's central bank.
Tuesday's deposit return represents the second instance that Egypt has returned funds from Qatar back to Doha within the last month. In September, Egypt also returned approximately $2 billion to the Gulf peninsula, after talks about converting the money into three-year bonds deteriorated.
Qatar, a staunch supporter of former Egyptian president Mohammed Morsi's Muslim Brotherhood, previously gave Egypt $7.5 billion while the Islamist president was in power. Since Morsi's oust in July, however, relations between the two countries has waned dramatically.
Egypt, however, is still in "sore" need of funding, particularly foreign currencies in order to avoid economic collapse as confidence in the country's pound decreases.
Since July, Saudi Arabia, Kuwait and the UAE have promised Egypt $12 billion aid in total.
- Why the Egyptian government and activists are just not seeing eye-to-eye on labour reforms
- Is the Saudi economy going to be unpredictable in H2?
- Abu Dhabi's economy and investors are happy because growth continues
- The clever's mistake: why a (good) candidate should be hired despite an odd typo
- Stability and jobs lead to a healthy housing market in Bahrain