The European Union and Egypt are finalizing a €1 billion agreement to support the macroeconomy, according to the Ministry of International Cooperation in Cairo. This funding is part of a larger €7.4 billion package announced during the Egyptian-European summit last March, which aimed to elevate joint relations to a strategic partnership level.
Rania Al-Mashat, the Minister of International Cooperation, stated that the €1 billion tranche will be disbursed in the second half of the year following its signing at the Egyptian-European investment conference. This initial tranche is the first step in a five billion euro mechanism designed to provide macroeconomic and budget support from the European Union. The remaining tranches are expected to be dispersed between 2025 and 2027.
The funding will be provided as soft financing with favorable repayment terms and low interest rates. This support is intended to help bolster Egypt’s economy and enhance financial stability.
In addition to the European Union’s financial commitment, the World Bank has also announced $700 million in financing to help support the Egyptian budget. This funding is part of a three-year, $6 billion development policy program aimed at increasing private sector involvement, improving macroeconomic resilience, and promoting sustainable growth in Egypt.
