Egypt has received the first instalment of a €1bn funding package from the European Union, with the funds being deposited into the Central Bank of Egypt (CBE) on Friday, Prime Minister Mostafa Madbouly announced.
The European Commission had previously announced in December the decision to disburse the €1bn in loans to Egypt, following the fulfilment of policy conditions agreed with the EU under the ongoing Macro-Financial Assistance (MFA) programme.
This financial support aims to assist Egypt in covering part of its financing needs for the fiscal year 2024/25 and ensure macroeconomic stability. It also is intended to support Egypt’s reform agenda in conjunction with the ongoing International Monetary Fund (IMF) programme.
Speaking at a press conference after Wednesday’s weekly cabinet meeting, Madbouly acknowledged that the previous year had been challenging due to significant internal and external complexities. He stated that the government had navigated these difficulties by implementing prudent policies and proactive measures.
Madbouly noted that the government had repaid approximately $39bn last year, meeting all of its obligations despite facing considerable global economic challenges.
He added that projections for 2025 indicate a significantly lighter financial burden compared to previous years and said that the government has developed a comprehensive plan to address all financial commitments.
“The state has the capacity to handle financial obligations and overcome challenges,” Madbouly reassured the public. He expressed confidence that the external pressures impacting Egypt and other nations would remain under control and voiced his hope that 2025 would be more prosperous for both Egypt and the world.
Egypt’s Minister of Planning, Economic Development and International Cooperation, Rania Al-Mashat, announced that discussions are underway to approve a second tranche of €4bn.
In December, the EU Commission stated that this MFA, along with the potential second operation of €4bn currently under discussion, forms a fundamental part of the EU-Egypt Strategic and Comprehensive Partnership.
This financial assistance comes as a response to multiple economic challenges over the last years, which have been exacerbated by the complex geopolitical situation in the Middle East. The EU considers Egypt a key pillar of stability and a strategic partner in the region.
