THE Arab Monetary Fund (AMF) said yesterday it was arranging a US$65 million credit facility for Egypt to help the country trade with other Arab states, as political instability threatens Cairo with a balance of payments crisis.
The credit line will be extended through a trade financing programme run by the AMF, central banks and other financial institutions in the region, said the AMF, a multilateral lending body with 22 member countries.
Egypt's balance of payments deficit ballooned to US$11 billion in the first nine months of its 2011-2012 fiscal year, more than double year-ago levels, as inflows of capital largely dried up. Cairo is seeking aid from a wide range of international donors; Egyptian officials said in February they had asked for US$500 million each from the AMF and the African Development Bank, US$1 billion from the World Bank and US$660 million from the European Union.
But aid has generally been slow to arrive, partly because donors have been cautious about lending while Egypt's political outlook remains unclear.
Farouk el-Okdah, Egypt's central bank governor, said at a AMF and regional central bank officials meeting in Abu Dhabi yesterday that the capital and revenues of Egyptian commercial banks were strong. Reuters
Monday, June 18, 2012
Feel free to comment on this article using your Facebook account. By submitting your comment, you agree to the Terms and Conditions for the use of this comments feature, as stated here.