The Turkish government has agreed to inject US two billion into Egypt’s ailing economy following the visit of an Egyptian delegation to Istanbul for the purpose of strengthening Turkish-Egyptian economic ties.
The government’s quest to bridge the state budget deficit and promote economic growth was recently manifested by a request to increase the proposed International Monetary Fund loan from $3.2 billion to $ 4.8 billion. The government has also exerted efforts to bolster economic ties with global partners such as China, the United States and the European Union, in order to attract more direct foreign investment.
Minister of Finance, Momtaz El-Saeed, announced Saturday that Turkey agreed to provide Egypt with a financial package worth US two billion, though he did not specify whether the Turkish financing would include any direct budget support, Reuters reported Saturday.
The Turkish embassy in Cairo stated that the financial aid package will be directed toward supporting dwindling foreign currency reserves and financing infrastructure projects, indicating that half the amount will be in the form of bilateral loans, MENA reported Saturday.
The Egyptian delegation to Turkey eyes more direct Turkish investments in various sectors. El-Saeed stated that the Egyptian delegation offered 15 projects, requiring $8.5 billionin investment. The government plans to carryout the projects under a Private-Public Partnership (PPP) model where the private party assumes financial, technical and operational risk, while the government provides public services and other facilities to the project.
Minister of Planning and International Cooperation, Ashraf el-Arabi,provided the Turkish representatives with the Egyptian government’s plan to bolster investment. The plan, according to el-Arabi, is to increase foreign direct investment to EGP 171 billion, targeting a 4.5 percent growth rate, reported the state-run al-Ahram Daily.
The Egyptian delegation to Turkey is headed by Essam Haddad, the President’s aid for Foreign Affairs and International Cooperation.The Turkish side was represented by Ali Babacan, the Deputy Prime Minister of Turkey.