EU and Egypt sign €1 billion agreement

Egypt and the European Union are set to sign a 1 billion euro ($1.07 billion) agreement to support the macroeconomy, as announced by the Ministry of International Cooperation in Cairo. This funding is part of a larger package of €7.4 billion that was agreed upon during the Egyptian-European summit in March. At this summit, a political declaration was signed to elevate the relationship between Egypt and the EU to the level of strategic partnership.

Rania Al-Mashat, the Minister of International Cooperation, stated that the 1 billion euro tranche will be accessible in the second half of the year following its signing at the Egyptian-European investment conference. This initial tranche is part of a mechanism to provide macroeconomic and budget support totaling five billion euros from the European Union. The ministry outlined that the remaining tranches are planned to be disbursed between 2025 and 2027, with the first tranche offering soft financing with favorable repayment terms and interest rates.

The World Bank also announced $700 million in financing on the same day to assist the Egyptian budget. This funding is part of a three-year, $6 billion development policy program aimed at increasing private sector involvement, enhancing macroeconomic and fiscal resilience, and promoting sustainable growth in Egypt.