Still-sour relations with KSA could see Egypt returning USD 500 mn deposit, plus interest: Talks with Riyadh to have KSA extend the life of a USD 500 mn deposit that expired in the first half of the state’s current 2016-17 fiscal year appear not to be going well. Al Masry Al Youm cites unnamed government sources as suggesting that Riyadh may not agree to renew its deposit, prompting the CBE to return the USD 500 mn and pay out some USD 40 mn in interest. That meshes with our view on Egyptian-Saudi relations amid reports that Saudi is stalling on paying the second tranche of a USD 1.5 bn development loan.

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