Saudi Arabia has deposited $5bn in Egypt’s central bank in an effort to shore up the economy of the most-populous Arab state, which has come under intense pressure as a result of the Russia’s invasion of Ukraine.
The state-run Saudi Press Agency said the funds deposited were part of the kingdom’s “tireless efforts” to support Egypt. Cairo announced last week it was seeking IMF support after the war sent the prices of wheat, cooking oil and fuel soaring and cut the flow of tourists from Russia and Ukraine — both important markets for its crucial tourism sector.
Egypt is one of the IMF’s biggest borrowers after Argentina and analysts said the country, which had resorted to the fund twice in the last six years, had exceeded its quota of IMF borrowing rights and would probably be required by the lender to secure co-financing from other sources. The deposit from Saudi Arabia would help meet this condition.