Qatar, Libya give Egypt five billion dollar boost amid IMF talks

Arab allies Qatar and Libya gave cash-strapped Egypt a $5 billion (3.2 billion pounds) double boost on Wednesday as the Arab world's most populous nation struggles to secure an IMF loan to ease its deepening economic crisis.

Qatari Prime Minister Sheikh Hamad bin Jassim al-Thani said after talks with Egyptian Prime Minister Hisham Kandil that Qatar would provide an extra $3 billion on top of some $5 billion the Gulf state has already given Cairo, and would extend gas supplies to Egypt this summer as needed.

He told a joint news conference that Qatar, the biggest financial backer of Egypt's Islamist-led government, "did not ask for anything in return" for its aid.

Hours later, Egypt's state news agency MENA reported that neighbouring Libya had signed an agreement to give Cairo a $2 billion five-year interest-free loan "to support the Egyptian economy and the state budget and foreign currency reserves". There was no immediate official confirmation from Libya.

Kandil said in a statement on his Facebook page that Qatar would buy $3 billion worth of Egyptian government bonds. He dismissed media reports that relations with Doha were strained over a series of tax and regulatory issues affecting Qatari banks seeking to acquire assets in Egypt.