Egypt has returned to Qatar $2bln that Doha had deposited with Egypt's central bank for bonds, a report said.
The move came after negotiations to convert the funds into three-year bonds broke down, Reuters quoted central bank Governor Hisham Ramez as saying on Thursday.
Qatar sent Egypt $3bln in May, and it converted $1bln into three-year bonds.
While Egypt was engaged in the long negotiations process with the IMF in hopes of getting a loan to save the faltering economy, Qatar pledged a $3bln lifeline to Egypt in the form of bond deposits, Al-Alam reported.
Qatar was also supposed to supply Egypt with Natural gas to cover the country's shortage which has been causing regular electricity outages.
The Persian Gulf state has previously provided Egypt with $7.5bln in aid during the year ousted President Mohammed Mursi was in power.
Qatar’s alleged support to the Muslim Brotherhood and its attempt to acquire assets in Egypt including the Suez Canal has caused a public and media outlash against Qatar. Many critics said that Qatar was trying to buy influence in the Arab World's most populace nation.
However, the mutual relations between two states deteriorated after the Egyptian army deposed Mursi on July 3.