LONDON: Egypt received €1 billion ($1.16 billion) from the EU on Thursday. The payment, designed to help boost the country’s financial stability, is part of a €5 billion macro-financial assistance package agreed in 2024.
The transfer was made after Egypt implemented a range of economic reforms, including improvements to public financial management and the foreign exchange market, the European Commission said.
The money is intended to help Egypt cover part of its financing needs, ensure economic stability, and support the country's economic reform agenda.
The €5 billion in macro-financial assistance, part of a broader €7.4 billion package, comes in the form of concessional loans that Egypt will have 35 years to repay. Thursday’s payment was the second, after an initial €1 billion was disbursed in December 2024. The remaining €3 billion is expected to be paid in two further installments this year.
Rania Al-Mashat, Egypt’s minister of planning, economic development and international cooperation, said the funding reflected the depth of Egyptian-European relations.
The financing package is directly linked to Egypt’s program of reforms designed to unlock the country’s economic potential, she added.
European Commission President Ursula von der Leyen said the latest payment “shows both the EU’s commitment to this partnership and Egypt’s efforts to build a stronger and greener economy.”
The commission said Egypt had fulfilled all the required conditions for the disbursement of funds, including that it remains on track with the requirements of an International Monetary Fund program. The IMF last month said it had reached an agreement with Egypt for reviews of that program, which could unlock about $2.5 billion.
Egypt secured an expanded $8 billion IMF package in March 2024, contingent on the country carrying out economic reforms.
The Egyptian economy has stabilized following a financial crisis in 2023 and 2024 that led to the devaluation of the Egyptian pound, a severe shortage of foreign exchange, and record-high inflation.
