EU Approves Up to €5 Billion Macro-Financial Assistance to Egypt
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Roshan Amiri
- . May 21, 2025
- . Update: May 21, 2025 1:03 am
EU Provisionally Resolves to Provide Egypt Up to €5 Billion in Macro-Financial Assistance
Representatives from the European Parliament and the Polish presidency of the Council have reached a provisional agreement to provide up to €5 billion in macro-financial assistance (MFA) to Egypt to support the economy. The backing will come as a loan, and one loan of up to €1 billion has already been a short-term loan after 2024. Under the current agreement, an extra €4 billion loan will be available to Egypt. The loans will have 35 years to be repaid under favorable repayment conditions.
The release of funds will be dependent on the successful implementation of the IMF program, and other policy measures agreed to by both parties in a memorandum between the EU and Egyptian authorities.
The European Commission will review progress once a year, to review Egypt’s economic outlook and the impact of the loans on Egypt’s fiscal position. The report will also review Egypt’s progress in strengthening democratic institutions, the rule of law, and the protection of human rights.
This financial aid is intended to enhance Egypt’s economic stability, whilst promoting reforms in the areas of good governance and the promotion of human rights.
