Saudi Arabia has pledged $4 billion in aid to Egypt, the Chief of Egypt's ruling Military Council said this past week.

The aid will be in the form of soft loans, deposits and grants, Field Marshal Mohamed Hussein Tantawi, Head of the Council, was quoted by Egypt's MENA news agency as saying. The agency did not provide a time frame or other details.

The Saudi Press Agency said Tantawi called Custodian of the Two Holy Mosques King Abdullah Bin Abdul Aziz on Saturday and thanked him for providing the financial assistance to his cash-strapped country.

The Egyptian leader highlighted the historic ties between the two Arab countries and commended the Kingdom for standing by his country during "these trying times," the SPA said. The two leaders also discussed major regional developments and ways of strengthening bilateral relations.

Egypt’s Al-Ahram daily quoted financial sources in Cairo as saying the Saudi package would support Egypt's general budget, the Central Bank, development and other projects and bond purchases. Egypt's economy contracted by an estimated 7% in the first quarter of 2011.

 

Source: Arab News