Egypt will return $3bn to Qatar in 2014
Relations between Qatar and Egypt deteriorated after army-backed mass protests ousted Mursi in July
Egypt will return $3 billion that were invested in bonds to Qatar when the debt matures by the end of the year, a central bank source told Reuters on Thursday.
“We will return $500 million to Qatar in October and $2.5bn in November [for] the bonds,” the source said.
Three years of political instability have left the Egyptian economy in tatters, with tourists and investors abandoning the country of 85 million people.
Qatar had been a firm backer of Mohamed Mursi’s Muslim Brotherhood and lent or gave Egypt $7.5bn during the year the Islamist was president.
But relations deteriorated after the army ousted Mursi in July after mass protests.
In September, Egypt returned $2 billion that Qatar had deposited with its central bank after talks to convert the funds into three-year bonds broke down.
The central bank also returned a $500 million deposit to Qatar in November and another $500 million in December after the Gulf country refused to renew the deposits upon its maturity.
Other Gulf countries, who deeply distrust the Muslim Brotherhood, stepped in to support the army-backed government installed after Mursi was dsposed. Saudi Arabia, the United Arab Emirates and Kuwait pledged more than $12bn.
-
Amid tensions, what lies ahead for Egypt-Qatar diplomacy?
Seething tensions have been etching away at Egypt and Qatar’s bilateral relations since Islamist President Mursi's ouster Analysis -
Egypt summons Qatar envoy amid MB row
Qatar had said the recent decision to designate the Muslim Brotherhood a terrorist group was “a prelude to a shoot-to-kill policy” Middle East -
Egypt returns $2 billion to Qatar in sign of growing tensions
Egypt has returned $2 billion that Qatar had deposited with its central bank, after talks to convert the funds into three-year bonds broke down, ... Business