Monday, May 21, 2012
CAIRO (Zawya Dow Jones)--Saudi Arabia will buy $500 million worth of Egyptian treasury bills by June 1, extending its pledge to support the North African country's economy post revolution, Egypt's ministry of finance said.
Finance Minister Momtaz el Saied said in a statement Sunday that the government is also currently in negotiations with the central bank to deposit a $1 billion loan already obtained by the Saudi government to support its budget.
The rest of the Saudi support package includes $500 million for financing government projects, $200 million as a grant directed to small and medium-size enterprises and $250 million to finance petroleum imports from the kingdom.
Economists say Egypt needs a quick agreement with the International Monetary Fund regarding a $3.2 billion loan in order to replenish reserves and restore international confidence in the economy, and prevent a disorderly devaluation of the Egyptian pound,
-By Farah Halime; Contributing to Dow Jones Newswires; +20111 4994453 Fhalime@gmail.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
21-05-12 0452GMT
