22 May 2011

Aid for Egypt from Saudi Arabia

8:37 am on 22 May 2011

Saudi Arabia has pledged $US4 billion in financial aid to Egypt.

The official Mena news agency in Egypt says the assistance consists of grants and long-term loans.

The Al-Ahram newspaper said on Saturday 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 January - March.

Cairo has been asking for help bridge with funding since the protests that ousted President Hosni Mubarak on 11 February.

In a speech on Thursday, US President Barack Obama pledged to relieve Egypt of up to $US1 billion in debt and to guarantee another $US1 billion in borrowing to finance infrastructure and job creation.