Egypt-Turkey sign $1bn loan deal

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Turkey’s Prime Minister Recep Tayyip Erdogan (R) and Egypt’s President Mohamed Morsi. Photo – Kayhan Ozer/Turkish PM’s office/AFP

Egypt’s President Mohamed Mursi signed a $1bn loan deal with Turkish Prime Minister Recep Tayyip Erdogan on Sunday as part of Ankara’s aid package promised to Cairo earlier this month, MENA state news agency reported. The ceremony took place after giving Mursi gave a speech at Turkey’s ruling AK Party conference.

In his conference speech, the Muslim Brotherhood praised and thanked Turkey for being the first country to back the Egyptian revolution which toppled Hosni Mubarak. He also spoke of strong regional policy ties with Turkey.

Egyptian Finance Minister Mumtaz al-Said told his country’s official MENA news agency that the two sides had reached agreement on a Turkish loan of $1 billion and will form part of a Turkish aid package worth a total of $2 billion dollars that he announced earlier this month.

Many analysts believe Egypt’s new Islamist rulers are taking notes from Turkish party’s success in building a regional economic powerhouse which has delivered strong growth.

Egypt has been battered by months of political turmoil, and is seeking to boost investor confidence in its economy by asking for donations and loans from the International Monetary Fund, Gulf states and other Western countries.

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