EU approves €1b loan to Egypt

The European Commission has approved a €1 billion loan to Egypt under the Macro-Financial Assistance (MFA) programme. The loan, aimed at addressing Egypt’s fiscal needs for 2024/2025, supports macroeconomic stability and aligns with the country’s reform agenda under the International Monetary Fund (IMF) programme, the EC has announced last Friday.

The commission confirmed Egypt’s progress on key reforms, including unifying its exchange rate, enhancing public financial management, and expanding social safety measures. Improvements in the investment climate and strides in the green transition, such as adopting a Sustainable Energy Strategy through 2040, were also cited.

This programme is part of the broader EU-Egypt partnership, which includes discussions on a €4 billion second operation, underscoring Egypt’s strategic role in regional stability amidst ongoing geopolitical challenges.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama