EU Confirms 1 Billion Euros of Short-Term Aid to Egypt
This loan is the first instalment of a larger deal that aims to stabilise the Egyptian economy.
On Friday, the EU pledged to provide Egypt with 1 billion euros of short-term financial aid. This loan is part of a larger package of loans, worth 5 billion euros, which was agreed upon by Egypt and the EU last March as the two bodies entered into a new strategic partnership. The remaining 4 billion of this package will be scheduled as longer-term assistance over 2024–2027 and has yet to be confirmed by the EU’s members. The total value of the deal, which has the main goal of stabilising the Egyptian economy and curbing illegal immigration, is 7.4 billion euros, and includes loans, grants, and investments. With Friday’s decision, the first 1 billion euros of aid has been adopted into law and will go into effect once it is published in the Official Journal of the EU.
This 1 billion euro loan is meant to help Egypt’s economy by mitigating the effects of the Gaza war, Houthi attacks in the Red Sea, and Russian aggression against Ukraine. This aid will be disbursed before the end of 2024. A precondition of this loan is that Egypt makes concrete steps towards strengthening its democratic mechanisms and guaranteeing respect for human rights. News of this aid comes one month after the IMF promised to provide Egypt with USD 8 billion in aid.
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