EU clears €4bn funding to support Egypt’s economy

The European parliament has approved €4 billion ($4.3 billion) in funding to Egypt to bolster economic resilience in what is the most populous country in the Middle East.

The parliament adopted Egypt’s macro-financial assistance with 452 votes in favour, 182 against, and 40 abstentions, it said in a statement.  

In March 2024, the EU agreed to a €7.4 billion funding package for Egypt as part of a push to stem migrant flows to Europe. The deal consists of €5 billion in concessionary loans, €1.8 billion in investment and €600 million in grants over the next three years.

The latest loan includes a short-term tranche of up to €1 billion, already disbursed, and another tranche of up to €4 billion to be disbursed in three instalments.  

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“The parliament will enter into negotiations with member states on the proposal for Egypt with a strong mandate to make a swift agreement,” said rapporteur Celine Imart.

Egypt looks set to save up to $190 million a year following changes the International Monetary Fund has made to charges paid by creditor countries, an expert told AGBI in October.

In March, Cairo said it would receive an expanded $8 billion loan from the IMF after agreeing to implement a set of reforms and policies.