Political tensions freeze Turkey's credit line to Egypt

"Talks between Egypt and Turkey regarding activation of the credit line are currently on hold," al-Arabi said

Political tensions freeze Turkey's credit line to Egypt

World Bulletin/News Desk

Egyptian Minister of Planning and International Cooperation Ashraf al-Arabi on Wednesday said that political tensions between Cairo and Ankara had led to the suspension of an agreement for a $1-billion Turkish credit line to the Egyptian government.

"Talks between Egypt and Turkey regarding activation of the credit line are currently on hold," al-Arabi told Anadolu Agency.

Last November, Turkish Prime Minister Recep Tayyip Erdogan and Egypt's then-President Mohamed Morsi –later ousted by the Egyptian military on July 3 – signed the credit agreement in Cairo.

Turkey continues to describe Morsi's ouster as a "military coup," a position that has angered Egypt's army-backed interim authorities.

"The political differences between the two countries have surely affected the activation of the agreement, but neither side has gone so far as to cancel it," al-Arabi said.

Some Egyptian business associations have called for the abrogation of a 2005 free trade agreement between the two countries to protest perceived Turkish "intervention" in Egypt's domestic affairs.

Last Mod: 18 Eylül 2013, 14:25
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