$4 billion Saudi aid for Egypt
In this May 19, 2011 photo, an Egyptian woman sits at a popular market in Cairo. Saudi Arabia has pledged financial assistance to help Egypt rebuild its economy. (AP)
Published: May 21, 2011 21:38 Updated: May 22, 2011 00:39
RIYADH: Saudi Arabia has pledged $4 billion in aid to Egypt, the chief of Egypt's ruling military council said Saturday. The aid will be in the form of soft loans, deposits and grants, Field Marshal Mohamed Hussein Tantawi, head of the council, was quoted by Egypt's MENA news agency as saying. The agency did not provide a time frame or other details.
The Saudi Press Agency said Tantawi called Custodian of the Two Holy Mosques King Abdullah on Saturday and thanked him for providing the financial assistance to his cash-strapped country.
The Egyptian leader highlighted the historic ties between the two Arab countries and commended the Kingdom for standing by his country during "these trying times," the SPA said. The two leaders also discussed major regional developments and ways of strengthening bilateral relations.
Cairo has been asking donors and the International Monetary Fund (IMF) to help bridge a funding gap through mid-2012 estimated at between $10 billion and $12 billion in the wake of the mass protests that ousted President Hosni Mubarak on Feb. 11.
The month-long anti-government protest has caused tourism and investor revenue to dry up at a time when high popular expectations have increased the pressure on the budget.
The mass circulation Al-Ahram daily quoted financial sources in Cairo as saying the Saudi package would support Egypt's general budget, the central bank, development and other projects and bond purchases. Egypt's economy contracted by an estimated 7 percent in the January-to-March quarter.

Comments
EUROPEAN WOMAN
May 22, 2011 01:13
Report abuseThe Saudis and other wealthy Arab nations should take over all aid to Muslim nations so that the evil infidels can aid their own people instead of ungrateful Muslims.
UM YUSUF
May 22, 2011 19:01
Report abuseRIYADH
May 22, 2011 19:02
Report abuseTHUNDERBOLT
May 22, 2011 19:04
Report abuseZAK
May 22, 2011 19:06
Report abuseWestern nations should withdraw from all muslim lands, drop their support for all western installed and backed dictators and let muslims choose their owen leaders. Also Europe and the West have plenty of land, enough and more to spare for Europeans who have stolen land in Palestine and forced its own people out and to this day continue to bomb, invade and occupy neighbouring lands.
Fair that.