Egypt has secured the first installment of a EUR1 billion (EGP billion 52) financial package from the European Union (EU). The funds, transferred to the Central Bank of Egypt (CBE) last Friday, aim to stabilize the nation’s economy while addressing financing needs for the fiscal year 2024/2025.
Prime Minister Mostafa Madbouly confirmed the development during a press conference following Wednesday’s weekly cabinet meeting, stating, “This funding comes at a crucial time, as we continue to implement measures that ensure macroeconomic stability despite the challenges we have 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 Rania Al-Mashat highlighted, “This funding is not only about meeting immediate financial needs but also about reinforcing Egypt’s structural reforms and development agenda.”
Al-Mashat also 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. Madbouly described the government’s performance as a testament to its proactive strategies and resilience. “The past year has been challenging, but our fiscal policies have enabled us to meet every commitment without fail,” he said.
Madbouly projected a lighter financial burden for 2025, adding, “Our comprehensive strategy ensures that all financial commitments are managed effectively, setting the stage for greater economic stability.”
