In these difficult economic times, when many countries are looking for solutions to support their populations, the European Union has once again distinguished itself by announcing a flexible loan worth LE53 billion (one billion euros) to Egypt. This decision aims to provide additional financial leeway to the Egyptian government to continue to guarantee essential services to its population.
This loan, the result of the Strategic and Comprehensive Partnership signed between President Abdel Fattah al-Sisi and the President of the European Commission, Ursula von der Leyen, in March 2024, is part of a broader package of financial support measures. Indeed, when signing this partnership, the two parties had agreed on a financial assistance loan programme totalling LE265 billion (five billion euros).
The first tranche of this financial assistance program, worth one billion euros, was signed in June 2024 at the High-Level Investment Conference between Egypt and the European Union. The agreement aimed to define indicators related to the macroeconomy, the resilience of the population, the business environment for job creation and the ecological transition.
After six months, Egypt has fulfilled the necessary conditions to benefit from this first tranche of the loan worth LE53 billion. This step marks a concrete step forward in the strategic and comprehensive partnership between the two entities.
The EU Ambassador-designate to Egypt, Angelina Eichhorst, stressed the importance of this flexible loan, which is the result of the fruitful partnership established at the June investment conference. She highlighted the genuine partnership relationship between the EU and Egypt, based on common interests, principles and objectives.
This first tranche of a €1 billion loan for Egypt demonstrates enhanced cooperation between the two parties. The ambition is to continue working together, alongside EU Member States, to support job creation, contribute to a more sustainable and dynamic economy for all citizens, and build a better future on both sides of the Mediterranean.