The European Council and the European Parliament, key pillars of the European Union (EU) have provisionally agreed to grant cash-strapped Egypt with €4bn ($4.5bn) in macro-financial assistance. This forms part of a broader €5bn ($5.6bn) agreement greenlit last year by the EU with the first €1bn ($1.1bn) tranche disbursed at the turn of the year (MEES, 3 January).
The European Council says the loan “will address the deteriorating macro-fiscal situation and financing needs of the country and should cover Egypt’s financing gap between July 2025 and June 2027.” With its finances severely stretched, Cairo will be relieved by the council’s flexible repayment terms which enable repayment over “a long period, including a possible grace period.” (CONTINUED - 328 WORDS)
