The European Union (EU) will provide 1 billion euros of urgent short-term macro-financial aid to Egypt to help stabilise its economy.
The aid is meant to address the country’s deteriorating macro-fiscal situation and financing needs over recent months.
According to Europa, the official web portal of the EU, the 1 billion euro 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 euros over the period 2024-2027.
Overall macro-financial assistance accompanies a revamped support programme concluded with the International Monetary Fund (IMF), up to 8 billion euros, which will be available provided several conditions are met.
Macro-financial assistance will be provided through loans made available in one instalment. A precondition for granting the aid 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.
