Egypt’s economy is edging closer to collapse, and now there is one less place the government here can turn to for much-needed financial aid.
After promising $5 billion in soft loans and grants to help curb the Egyptian pound’s recent slide against the dollar, the tiny but vastly wealthy Gulf nation of Qatar is now backing off pledges of any further funding for the cash-strapped nation.
Observers saw Qatar and its royal family as initial backers of the Muslim Brotherhood government and its president, Mohamed Morsi, providing substantial funds and deposits to Egypt’s Central Bank. But earlier this month, the Qatari finance minister said there were no plans to inject more cash into Egypt’s flagging economy — crippled by a massive budget deficit. The finance minister did not give a reason.