Saudi approves $430m in new aid to Egypt
Cairo, June 9, 2012
Saudi Arabia said it had approved $430 million in project aid to Egypt and would allow Cairo to use a $750 million line of credit to import oil products.
The aid, to be provided by the Saudi Fund for Development, is part of a package that Saudi Arabia announced a year ago to support the country's cash-strapped economy in the wake of an uprising that deposed president Hosni Mubarak.
The uprising chased away tourists and foreign investors, two of Egypt's main sources of foreign currency, and economists have said the country will need a minimum of $11 billion over the next year to stave off a balance of payments crisis and a potential devaluation of its currency.
Saudi Arabia is keen to help Egypt overcome its political and economic problems.
Saudi Arabia earlier this month transferred a separate $1.5bn to Cairo as direct budget support.-Reuters