Egyptian President Mohamed Morsi with Iraqi Foreign Affairs Minister Hoshyar Zebari. Iraq declined an offer to deposit $4 billion in Egypt as too risky., a photo by Pan-African News Wire File Photos on Flickr.
Iraq rejects $4bn Egypt lifeline request on high risk
AP, Friday 29 Mar 2013
Iraqi official says depositing such a large sum in Egypt would be too risky
An Iraqi official says Baghdad has rejected a request from Egypt for a $4 billion bond to be deposited in Egypt's central bank to bolster its faltering economy.
The official said on Friday that it's "too risky" to deposit such a large sum in Egypt but that talks are continuing for a smaller amount. The official didn't elaborate. He spoke on condition of anonymity because he wasn't authorized to talk to the media.
In Egypt, the presidency's media office confirmed in a statement to The Associated Press that discussions with Iraq are ongoing.
Egypt's planning minister, Ashraf el-Araby, visited Iraq this week.
Egypt has sought help from several oil-wealthy Arab countries to shore up reserves in its central bank, which were depleted in the aftermath of Hosni Mubarak's 2011 ouster.