Egypt working with IATA regarding blocked funds

It has been reported from Geneva that the International Transport Association (IATA) and Egypt’s authorities are attempting to find a solution for the repatriation of funds owed to airlines operating in Egypt.
The current value of blocked funds stands at US$275 million. To date ongoing discussions between airlines, the Central Bank of Egypt and Egypt’s Civil Aviation Authority has seen US$240 million released while discussions continue regarding an appropriate time schedule for further payments to be made.
Air connectivity is crucial to the Egyptian economy as aviation supports the employment of over 1 million people and produces US$13.1 billion in social and economic benefits. It is imperative from the aspect of both businesses and tourism that IATA, the airlines and the Egyptian government create a solution to the current problem that will comply with international obligations.
Egypt has struggled against the country’s foreign exchange black market since the January 2011 uprising and from December 2012 the central bank had been controlling the official exchange rate through frequent foreign currency auctions. However, in March 2015 further restrictions were placed on the level of dollar deposits allowed in Egyptian banks in a move to fully eradicate the disruptive influence of the black market. The consequence of this though has been a shortage of dollars, and hence the underlying reason behind blocked funds.
Egypt imports most of its basic commodities and relies heavily on income generated by the Suez Canal and tourism. At the end of December 2014 foreign exchange reserves stood at US$15.3 billion. In June this year it was announced that these reserves had risen to US$17.5 billion, but figures released for July show this figure had fallen dramatically to US$15.54 billion.