Representatives of the European Parliament and EU member state governments have reached a provisional agreement to provide Egypt with €4 billion (\$4.5 billion) in loans aimed at supporting the country’s economy and strengthening bilateral cooperation under a strategic partnership framework.
In a statement released Monday evening, the European Parliament announced: “Representatives of the Parliament and the Polish Presidency of the Council of the European Union have reached a provisional agreement on macro-financial assistance for Egypt to support its economy.”
The new financial support comes in addition to a short-term loan of up to €1 billion that was disbursed at the end of 2024. The additional €4 billion loan will now follow, as part of broader efforts to stabilize Egypt’s economic situation.
According to the Parliament, the loan will have a repayment period of up to 35 years, offering Egypt long-term financial flexibility.
EU capitals confirmed that the funds will be disbursed in several tranches and will be subject to specific conditions, including economic and structural reform benchmarks.
While the agreement still requires formal approval, the loans fall under the strategic partnership signed between the EU and Egypt in March 2024. The partnership was designed to deepen cooperation on a range of issues, including economic development, regional stability, and migration.
The initiative also comes amid rising numbers of refugees in the region, with the EU seeking closer ties with Egypt to manage irregular migration and promote political and economic cooperation with the North African nation.
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