Enough GCC aid will be made available: Merrill Lynch

Sufficient aid will be available to Egypt through external bilateral assistance from the Gulf Cooperation Council (GCC), according to a Thursday report by the Bank of America Merrill Lynch.

The report also expects no near-term International Monetary Fund (IMF) engagement with Egypt.

Tightened liquidity suggests a need for the GCC aid in the second half of 2014 to support the Egyptian pound and ease external funding pressures.

Authorities appear to be focused on securing direct GCC fiscal support through purchases of EGP-dominated treasury bills (T-bills) and treasury bonds (T-bonds).

The government is also studying the possibility of issuing international bonds backed by the GCC.

The uninterrupted flow of fuel supports the prediction of continued GCC aid.

Following the last Saudi fuel in-kind grant in August, the UAE announced it would provide $8.7bn in fuel products over a 12-month period starting in September.