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Finance Ministry: Egypt to receive $3 bn of Saudi petrol aid

February 18, 2014

Al-Masry Al-Youm



  Sami Khallaf, finance ministry adviser and head of the ministry's public debt unit, said the government will receive in the coming period the remainder of the Saudi financial package valued at US$3 billion, the majority of which will be in the form of petroleum substances.   Egypt has so far received $2 billion out of the non-refundable Saudi donation of $5 billion before Prime Minister Hazem al-Beblawy's visit to the kingdom. "There is no alternative to the aid, except production to achieve targeted growth, installments of debt payment and future earnings through carrying out national development projects to employ the youth and reduce unemployment," he added. Domestic public debt hiked up to LE1,560 billion, Khallaf added, stressing the necessity to limit calls for increase in wages. "Around 30 percent of the first economic stimulus package, estimated at LE29.7 billion, has been injected into the economy," Khallaf said. "The majority of the package was injected in December, especially for social justice projects, fuel, payments for construction debt and contracting sectors and foreign partners in the petrol sector who received LE1.5 billion in coordination with the petroleum authority."   Khaliaf said that the rest of the first package will go to restructuring stalled factories suffering financial problems. "The second package, estimated at LE33.9 billion, will be pumped into investment projects and to resume projects of social justice and infrastructure. Most of the investment projects will be financed by the United Arab Emirates and the social justice and infrastructure projects will be funded by the ministry," Khaliaf said.  Edited translation from Al-Masry Al-Youm


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Source: Egypt Independent


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