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