EU Disburses Concessional Loan of €1 Billion to Egypt

Today the European Union decided to disburse a concessional loan of EGP 53 billion (EUR 1 billion) to the benefit of Egypt, helping to create more fiscal space for the Government to continue its spending on essential services for the population.

This is the result of the Strategic and Comprehensive Partnership signed between President Abdel Fatah Al-Sisi of Egypt and European Union President Ursula von der Leyen in March 2024. Both parties agreed on a Macro-Financial Assistance (MFA) loan package of a total of EGP 265 billion (EUR 5 billion).

The first package of EUR 1 billion was signed in June 2024 during the Egypt-EU high-level investment conference, setting indicators related to the macro-economy, resilience of the population, the business environment for job creation, and the green transition.

Six months after the signature, Egypt has now completed the requirements for the first loan of EGP 53 billion.

Ambassador Angelina Eichhorst said “This is an important tangible result of our Strategic and Comprehensive Partnership after a successful Investment Conference last June. The EU and Egypt are real partners, and every day we engage more and more in a real dialogue around our common interests, principles and objectives. This first tranche of EUR 1 billion of EU Macro-Financial Assistance shows an ever closer co-operation, and with our Member States we will continue to work hard with Egypt to create jobs, to work on a greener and more vibrant economy for all citizens, and for a better future on both sides of the Mediterranean.”