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Thu 8 Sep 2016 11:10 AM

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Egypt in talks to secure $2bn-3bn deposit from Saudi Arabia to seal IMF deal

Finance minister Amr El-Garhy said negotiations with were due to be completed in the next few weeks

Egypt in talks to secure $2bn-3bn deposit from Saudi Arabia to seal IMF deal
Egypts Minister of Finance Amr al-Garhy. (STR/AFP/Getty Images)

Egypt is in advanced talks with Saudi Arabia to secure a new deposit worth $2-3 billion as part of about $6 billion in bilateral financing required to seal an IMF loan, the finance minister said in comments published by Al Borsa newspaper.

Borsa quoted Amr El-Garhy as saying that negotiations with Saudi Arabia were due to be completed in the next few weeks.

It was not clear if Garhy was expecting Egypt to agree on the disbursement of a $2 billion deposit agreed with Saudi Arabia in April or if the country was seeking new funding.

Egypt reached a preliminary agreement with the International Monetary Fund in August for a $12 billion three-year lending programme to help it plug its funding gap and stabilise markets. But the deal requires Egypt to secure a further $6 billion in bilateral financing.

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