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Libya, Qatar offer Egypt large loans: Reports


The Egyptian pound slipped to a record low on January 9, 2013 despite news of a $2.5 billion loan from Qatar.


Abid Katib

Libya is giving Egypt a $2-million-dollar interest-free loan, according to Egyptian state media cited by Reuters, a report that comes as Qatar offers the nation a loan of $3 billion. 

MENA said the Libyan loan agreement was signed on Wednesday, with the finance ministry saying the reason was "to support the Egyptian economy and the state budget and foreign currency reserves."

Egypt has ploughed through much of its reserves and its economy is struggling, leading to widespread economic discontent and tense discussions with the International Monetary Fund (IMF).

Also Wednesday, Qatari prime minister Hamad Bin Jassim Bin Jaber Al Thani said Qatar will give Egypt a loan worth $3 billion by buying Egyptian government bonds and through deposits, according to the Brazil-Arab News Agency

Meanwhile, Egyptian officials are still trying to hash out the terms of an IMF loan worth $4.8 billion, said Reuters