Qatar respects Egypt’s decision to return $2 billion deposit, Say official Source

September 21, 2013 1:13 pm

Qatar respects Egypt’s decision to return $2 billion deposit, Say official Source

Doha 21st September 2013: An official source at Ministry of Finance, Qatar said that the Ministry respects the Egyptian government’s decision to return the USD 2 billion bank deposit.

Various meetings were held in Doha for the last two weeks between the technical team representative of the Egyptian Central Bank and the Qatari side to convert the fund into bonds in a sign of growing tension since the overthrow of Egypt’s Islamist president Mohamed Morsi.

Qatar has suggested converting the fund into four equal bonds worth USD 500 million given that the first installment will be paid instantly and the rest within three months.  Egyptian representatives agreed to this proposal at the beginning, but later denied it, demanding the deposit shall be converted into bonds at once, according to the source.

Then Qatar offered to pay the deposit in two installments, the first installment of USD 1 billion will be paid immediately and the second installment within one month. But the Egyptian team insisted to pay in one installment, the source added.

The deposit was part of an $8-billion Qatari aid package to Egypt after the 2011 revolution which toppled its president Hosni Mubarak. Qatar had sent Egypt $3 billion in May. Egypt’s relations with Qatar became worse after the ouster of President Mohamed Morsi in July. Qatar had been a supporter of Morsi’s Muslim Brotherhood.

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About the Author

Ahmad Diyari Kaashif is a Senior Journalist and Head of the International Bureau at Qatar Chronicle

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