EU to provide €1 billion macro-financial assistance to Egypt - GulfToday

EU to provide €1 billion macro-financial assistance to Egypt

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The European Union (EU) will provide €1 billion of urgent short-term macro-financial assistance to Egypt to help stabilise its economy, according to Europa, the official web portal of the EU.

The aid is meant to address the deteriorating macro-fiscal situation and financing needs of the country over the recent months, notably after the latest developments in the Gaza Strip, the Red Sea and Ukraine.

The €1 billion of short term assistance is part of a package of two proposals to provide macro-financial assistance to Egypt. The second part of the operation, still to be adopted, would provide € 4 billion over the period 2024-2027.

The overall macro-financial assistance accompanies a revamped support programme concluded with the International Monetary Fund (IMF), of up to € 8 billion, which will be made available provided several conditions are met.

The macro-financial assistance will be provided in the form of loans made available in one instalment.

A precondition for granting the assistance is that Egypt continues to make concrete and credible steps towards respecting effective democratic mechanisms (including a multi-party parliamentary system) and the rule of law and guaranteeing respect for human rights.

WAM

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