Egypt receives first €1bn tranche of EU MFA support

Egypt received €1 billion in macro financial assistance from the European Commission on Thursday, marking the first tranche of a €4 billion support package under the EU Egypt Strategic and Comprehensive Partnership signed in March 2024.

According to the official statement, the funding will help Egypt cover part of its financing needs, support macroeconomic stability, and advance its economic reform agenda alongside the ongoing International Monetary Fund (IMF) programme.

The European Commission said the disbursement will also ease balance of payments pressures linked to regional tensions, disruptions in the Red Sea, and the global fallout from Russia’s war in Ukraine.

The Commission concluded that Egypt met all conditions required for the payment, including agreed economic policy measures, progress on democratic mechanisms, the rule of law and human rights, and keeping the IMF programme on track. It highlighted reforms to strengthen macroeconomic stability, improve public financial management, enhance the functioning of the foreign exchange market, boost competitiveness through competitive industrial land allocation and streamlined licensing, and support the green transition in water and energy.

Notably, the €4 billion operation is part of a broader €5 billion macro financial assistance package agreed between the EU and Egypt, which also includes a €1 billion short-term facility disbursed at the end of 2024, within the framework of the partnership concluded in March 2024.

Attribution: Amwal Al Ghad English