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UAE agrees to give Egypt $3 billion in loans and grant, source says

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The United Arab Emirates agreed to give Egypt $1 billion and lend it another $2 billion, an Egyptian source close to the talks told Reuters on Tuesday.

The amount was expected to be part of a larger financial package from the UAE, the source said, adding that the loan would be in the form of a deposit at Egypt's central bank, although the interest rate and maturity had yet to be finalized.

He also said that Saudi Arabia was expected to lend Egypt $2 billion, which he expected to be confirmed within two days.

United Arab Emirates Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan headed a delegation to Cairo on Tuesday morning, a Foreign Ministry spokesman said.

The delegation is coming to "show full support to the people of Egypt - political support, economic support," Egypt's foreign ministry spokesman Badr Abdelatty told Reuters by telephone.

The delegation will reportedly meet with the interim president as well as defense minister.

The UAE was one of the first countries to congratulate Egypt following the army’s decision to oust Islamist President Mohammed Mursi – who hails from the Muslim Brotherhood.

UAE Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan said last week his country is confident that the Egyptian people will be able to overcome the current difficult situation “to reach a safe and prosperous future.”

The UAE foreign minister also said that the Egyptian army proved that it was a “strong shield” and “protector,” which – he added – guarantees the country embraced all components of the people.

(With Reuters)