Egypt to get $1bn from EU this week

Egypt will receive €1 billion ($1.2 billion) this week from the European Union as the second part of a €5 billion loan package supporting the North African nation’s economy, a senior government official said.

The first payment, of €1 billion, was disbursed in December 2024. The third tranche of €1.5 billion will be paid in mid-2026, with a fourth instalment of €1.5 billion expected by year-end, the Egyptian cabinet said in a statement, quoting minister of planning and economic development Rania Al-Mashat.

In March 2024 the EU agreed a €7.4 billion funding package for Egypt. The deal comprises €5 billion in concessional loans, €1.8 billion in investment and €600 million in grants over three years.

Cairo will have 35 years to repay the loans.

The release of the funds is subject to Egypt’s implementation of an International Monetary Fund programme and other policy actions.

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Egypt is carrying out more than 100 economic and structural measures to support growth, enhance financial stability and improve the business environment as well as the economy’s competitiveness, Al-Mashat said.

She added that the government is implementing reforms to empower the private sector. The new funds will provide social protection and support health and education in line with Egypt’s development plan, Al-Mashat said.

The European Bank for Reconstruction and Development agreed last year to provide €200 million to support Egypt’s planned transition to a green economy.