The funds, transferred to the Central Bank of Egypt (CBE) beginning of 2025, aim to stabilize the nation’s economy while addressing financing needs for the fiscal year 2024/2025. This funding comes at a crucial time, as the Government continues to implement measures that ensure macroeconomic stability despite the challenges faced. The European Commission approved the loan in December, following Egypt’s fulfillment of specific policy conditions tied to the EU’s Macro-Financial Assistance (MFA) program. The MFA, part of the EU-Egypt Strategic and Comprehensive Partnership, emphasizes collaborative economic reform and resilience-building measures. EU officials stressed that the funding demonstrates Europe’s commitment to supporting Egypt during a period of global economic strain. “[Egypt] is a pillar of stability in the Middle East and a vital partner in ensuring regional security,” the European Commission noted in its announcement. The financial package aligns with Egypt’s broader reform initiatives under the International Monetary Fund (IMF) program. Minister of Planning, Economic Development, and International Cooperation confirmed ongoing discussions for an additional tranche of EUR 4 billion (EGP 210 billion). These discussions are integral to the EU-Egypt partnership, which has extensively supported Egypt’s economic trajectory in recent years. Egypt repaid approximately USD 39 billion (EGP 1.975 Trillion) in financial obligations in 2024.
