Egypt, EU sign €1b financial aid pact

Egypt, signed a landmark agreement with the European Union, securing the first tranche of Macro-Financial Assistance (MFA) totaling €1 billion euros. The agreement was signed by Rania Al-Mashat, Egypt’s Minister of International Co-operation on the sidelines of the Egypt-EU Investment Conference.

This initial funding is part of a comprehensive 5 billion euros package earmarked until 2027, featuring extended repayment terms designed to support Egypt’s economic stability.

Minister Al-Mashat emphasised the pivotal role of President El Sisi and President von der Leyen in advancing Egyptian-European relations, highlighting shared developmental priorities.

The MFA mechanism offers concessional financing at rates lower than international market norms, thereby reducing credit costs for Egypt’s private sector and enhancing fiscal flexibility.

Underlining the strategic nature of the partnership, Minister Al-Mashat noted that this initiative aligns with commitments made during the Egyptian-European Summit, totaling 7.4 billion euros.

The first tranche of one billion euros is set for disbursement later in 2024, with subsequent installments totaling 4 billion euros scheduled between 2025 and 2027.