European Parliament agrees on financial aid to Egypt worth €4 bln in loans

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, according to a press release on the official website of the European Parliament.

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.