Created on Sunday, 17 June 2012 06:15
Written by REUTERS
The Arab Monetary Fund (AMF) said on Sunday it was arranging a $65 million credit facility for Egypt to help the country trade with other Arab states, as political instability threatens Cairo with a balance of payments crisis.Arab-Monetary-Fund
The credit line will be extended through a trade financing program run by the AMF, central banks and other financial institutions in the region, said the AMF, a multilateral lending body with 22 member countries.
Egypt’s balance of payments deficit ballooned to $11 billion in the first nine months of its 2011-2012 fiscal year, more than double year-ago levels, as inflows of capital largely dried up.
Cairo is seeking aid from a wide range of international donors; Egyptian officials said in February they had asked for $500 million each from the AMF and the African Development Bank, $1 billion from the World Bank and $660 million from the European Union. But aid has generally been slow to arrive, partly because donors have been Curency
cautious about lending while Egypt’s political outlook remains unclear.
Farouk el-Okdah, Egypt’s central bank governor, said at a meeting of AMF and regional central bank officials in Abu Dhabi on Sunday that the capital and revenues of Egyptian commercial banks were strong. “We are in a better position now,” he said without giving figures.