EU Approves Financial Assistance to Egypt worth €1 Billion

The Council of the European Union approved, Friday, financial support worth €1 billion for Egypt.

The Council stated - in a press statement, that the European Union will provide €1 billion in urgent short-term macro financial aid to Egypt to help support economic stability.

According to the statement, the support aims to address the financial situation and financing needs of the country during recent months, especially after the outbreak of the Gaza war, the Houthi attacks in the Red Sea, and the repercussions of the Russian-Ukrainian war.

The Council added that the short-term assistance is part of a package to provide total financial assistance to Egypt. The other part, which has not yet been approved, will provide €4 billion during the period 2024/27.

The comprehensive macro financial assistance is accompanied by a renewed support program concluded with the International Monetary Fund worth up to €8 billion.

The total financial assistance will be provided in the form of loans available in one lump sum; the decision will enter into force the day after its publication in the Official Journal of the European Union.

In accordance with the Financial Regulations, loans will be provided in the EU budget at a rate of 9% (€90 million).