Ahmadinejad says sanctions-bound Iran offered Egypt loan

Iran has offered to lend money to cash-strapped Egypt despite being under international economic sanctions itself over its nuclear programme, visiting President Mahnoud Ahmadinejad was quoted on Wednesday as saying.

The two countries do not have diplomatic relations but Egypt’s first Islamist president, Mohamed Mursi, gave Ahmadinejad a red-carpet welcome on Tuesday when he became the first Iranian leader to visit in more than 34 years.

“I have said previously that we can offer a big credit line to the Egyptian brothers, and many services,” Ahmadinejad told the Egyptian daily al-Ahram in an interview. He did not say if there had been any response.

The president said the Iranian economy had been affected by sanctions but it is a “great economy” that was witnessing “positive matters”, saying exports were increasing gradually.

The United States and its Western allies have sought to choke off Iran’s vital oil exports by embargoing imports from the Islamic republic and cutting its access to shipping, insurance and finance.

Egypt disclosed on Tuesday that its foreign reserves had fallen below the $15 billion level that covers three months’ imports despite recent deposits by Qatar to support it.