Representatives from Parliament and the Polish presidency of the Council have secured a provisional agreement on providing Egypt with macro-financial assistance (MFA) to support its economy.
The MFA is worth up to €5 billion in the form of loans. A short-term loan of up to €1 billion was already disbursed at the end of 2024. An additional loan of up to €4 billion will now be disbursed. Egypt will have 35 years to repay the loans.
The release of the funds is subject to Egypt’s satisfactory implementation of the International Monetary Fund (IMF) programme and other policy measures to be agreed in a memorandum between the EU and the Egyptian authorities.
In a yearly report to Parliament and Council, the Commission will examine the progress made, assess Egypt’s economic prospects and evaluate the loans’ impact on the economic and fiscal situation. The Commission will also evaluate steps taken to shore up democratic mechanisms and the rule of law and to protect human rights in the country.
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Rapporteur Celine Imart (EPP, France), said: “I welcome the agreement reached with the Commission and the Council on the MFA for Egypt. It is a balanced text that will serve European interests while respecting the specific situation of our Egyptian key partner.”
Next steps
Before it can enter into force, the agreement needs the formal approval of both the International Trade Committee and Parliament’s plenary, as well as that of Council.
Background
Given Egypt’s critical economic and financial situation and its role as an important stabilising presence in an increasingly volatile region, on 24 March 2024 the Commission proposed to support the country with macro-financial assistance in the form of loans worth up to €5 billion.
Macro-financial assistance initiatives are EU financial support packages concluded with partner countries that are struggling with financial, economic, societal challenges, to help with structural political and economic reforms.
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