Egypt has returned $2 billion that Qatar had deposited with the Central Bank of Egypt (CBE) , after talks to convert the funds into three-year bonds broke down, CBE Governor Hisham Ramez said on Thursday 19/09/2013.
Qatar had sent Egypt $3 billion in May, of which it converted $1 billion into three-year bonds.
Ramez said that the Qatari authorities had agreed to convert the entire remaining $2 billion but then changed their minds.
"They wanted to postpone it, then they said they would do it like they announced last time, and then they came back with some amendments, doing part and postponing the other part for a time, which we found not suitable for us," he said.
"So we just repaid the deposit."
Egyptian officials have said that the loss of the Qatari funds would not affect the country's financial situation during the budgetary year that began on July 1.