EBRD Plans €5 Billion Support Package for Economies Hit by Iran War, Including Egypt

The European Bank for Reconstruction and Development (EBRD) announced plans to deploy €5 billion in financing during 2026 to support economies affected by the ongoing conflict in the Middle East, including Egypt.

According to the bank’s latest statement, the funding will target several countries impacted by the crises, including Iraq, Jordan, Lebanon, Gaza, and the West Bank, as part of a broader effort to mitigate the economic fallout of the Iran war.

The support will extend to neighboring affected countries, namely Egypt, Turkey, Armenia and Azerbaijan.

The EBRD warned that the situation remains volatile, with the economic and social consequences of the conflict already becoming visible across multiple countries. Key challenges include disrupted trade routes, energy and commodity shocks, and declining investor confidence.

Odile Renaud-Basso said the bank is well-positioned to step in amid growing uncertainty, emphasizing its commitment to maintaining strong financial foundations while providing timely support.

“We are here to support economies, clients, and people in the countries where we operate during difficult times,” she said.

The financing strategy will prioritize sustaining economic activity, stabilizing financial sectors, and ensuring the continuity of essential services. It will also support long-term recovery efforts in affected economies.

In the short term, the bank will focus on strengthening energy security by providing liquidity support to energy companies.

For the private sector, the EBRD plans to extend working capital and liquidity facilities to help businesses navigate market volatility and maintain operations.

Over the longer term, the bank aims to invest in infrastructure, trade routes, and food security, alongside digital solutions designed to enhance economic connectivity and growth.

The EBRD also highlighted plans to coordinate closely with governments, donors, international financial institutions, and development finance partners to mobilize additional funding.

The initiative reflects a broader push to help vulnerable economies absorb external shocks and emerge more resilient in the face of ongoing geopolitical and economic uncertainty.