Qatar lends more cash to struggling Egypt

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Qatar lends more cash to struggling Egypt

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Qatar has announced it is doubling its aid to Egypt with a new injection of cash, the equivalent of 1.5 billion euros.

The move comes as Cairo faces a currency crisis after the recent political upheaval.

The lifeline eases pressure on President Mursi as he negotiates a multi billion dollar loan with the International Monetary Fund.

Although the IMF is willing to help it wants to see reforms including tax hikes and cuts in subsidies before handing it over.

Austerity measures which are not widely popular and could hurt Mursi’s Muslim Brotherhood at the polls.

Egypt’s main source of hard currency is tourism but the ousting of President Mubarak and further political turmoil has undermined the industry.

Qatar’s intervention is seen as a bid to increase its influence in the region.