After the International Monetary Fund .. Egypt seeks to borrow from the UAE

Reuters quoted three informed sources as saying that the Egyptian government is looking for a loan of more than one billion dollars from UAE banks, after receiving a loan from the International Monetary Fund last month.

The three sources, who declined to be identified, said that the Egyptian authorities had addressed banks in the United Arab Emirates to arrange the financing, and that Emirates NBD and First Abu Dhabi Bank were helping to arrange the loan, which would be for one year, and that they had contacted other banks.

Egypt received 2 billion and 770 million dollars in emergency financing from the International Monetary Fund in May, and this month reached an expert-level agreement for a credit preparedness loan of 5 billion and 200 million dollars for a year.

Egypt's foreign exchange reserves decreased by 5 billion and 400 million dollars in March, 3 billion and 70 million dollars in April, and one billion dollars in May with the crisis of "Covid-19" reducing some of the main sources of hard currency.

Egypt received $ 13 billion in tourism revenue and 26 billion in transfers last year. The government says tourism contributes 5% of GDP, but analysts say the figure could be as high as 15% on account of indirect jobs, spending and investment.

In this context, too, Reuters quoted EgyptAir President Roshdy Zakaria as saying that the national carrier is seeking a loan of 3 billion Egyptian pounds ($ 185 million) to overcome the effects of the Corona crisis.

He said that the procedures for obtaining the loan from the National Bank of Egypt and the state-owned Bank of Egypt are expected to be completed by next month.

He added that the money will be used to pay 12 million dollars in foreign loan installments obtained by the company, to finance the purchase of new aircraft.

Zakaria pointed out that the crisis has prompted Egypt to close its airports to most commercial flights since mid-March, which costs EgyptAir 3 billion pounds per month.

The Corona virus crisis affected Egypt's finances, as it stopped tourism, affected Egyptians' remittances abroad and fueled the exodus of capital.