During the weekly press conference on Wednesday, January 1, Prime Minister Mostafa Madbouly announced that Egypt has received the first installment of the European Union’s €7.4 billion ($8 billion) financing package. The €1 billion tranche was deposited into the Central Bank of Egypt last Friday December 27, marking the start of the financial assistance aimed at bolstering the country’s fiscal stability and supporting its ongoing reform efforts.
This funding is part of the EU’s Macro-Financial Assistance (MFA) program, following the European Commission’s approval in December to release the loan after Egypt met specific policy conditions. The aid is intended to help Egypt address a portion of its financing needs for the 2024/2025 fiscal year and to support the country’s reform agenda in line with the International Monetary Fund (IMF) program.
Madbouly acknowledged the significant economic challenges Egypt faced in 2024, attributing the difficulties to both internal and external factors. However, he noted that the government had effectively responded with a range of policies and proactive measures to mitigate the adverse impacts of these challenges.
The Prime Minister also highlighted Egypt’s success in repaying $39 billion in 2024, fulfilling all financial obligations despite the global economic pressures. Looking forward, he expressed optimism that the financial burden would ease in 2025, with the government already working on a comprehensive plan to address upcoming commitments.
In addition to the €1 billion received, Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat, confirmed that discussions are ongoing regarding the approval of a second tranche of €4 billion. This is part of a broader EU-Egypt partnership aimed at strengthening Egypt’s economic stability and addressing regional challenges exacerbated by geopolitical issues.