Egypt has returned $2bn that Qatar had deposited with its central bank, after talks to convert the funds into three-year bonds broke down, central bank Governor Hisham Ramez said.<br /><br />Egypt authorities have also refused a Qatari request to increase the number of flights between the two states, according to Egyptian airport sources, in a further sign of rising tension between the two Arab states.<br /><br />Cairo's relations with Qatar deteriorated after the Egyptian army deposed President Mohamed Morsi on July 3. Qatar had been a firm backer of Morsi's Muslim Brotherhood and lent Egypt $7.5bn during the year he was in power.<br /><br />Visit our Egypt live blog for more details: http://live.aljazeera.com/Event/Egypt_Live_Blog_2
