The EU Council of Finance Ministers (Ecofin) has agreed to provide one billion euros of emergency short-term macro-financial assistance to Egypt to help stabilize its economy.
This assistance is part of the €5 billion macro-financial assistance signed between the EU and Egypt in mid-March in Cairo.
According to a Council announcement, the EUR 1 billion in aid is intended to address Egypt’s deteriorating macroeconomic situation and financing needs in recent months, particularly following the outbreak of the Gaza war, the Houthi attacks in the Red Sea and the fallout from of Russia’s war of aggression against Ukraine.
The €1 billion short-term aid is part of a package of two proposals to provide macro-financial assistance to Egypt. The aim is for the first part of 1 billion to be disbursed before the end of 2024 to meet Egypt’s urgent financing needs. The second part, which has not yet been approved, will provide €4 billion for the period 2024-2027.
The overall macro-financial assistance comes with a renewed support program concluded with the International Monetary Fund (IMF) of up to €8 billion, which will be made available subject to various conditions being met.
Macro-financial assistance will be provided in the form of loans disbursed in one tranche. Aid is conditional on Egypt continuing to take concrete and credible steps towards respecting effective democratic mechanisms (including a multi-party parliamentary system) and the rule of law and ensuring respect for human rights.
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