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The loan is meant to address Cairo’s deteriorating fiscal situation and financial needs, notably after the outbreak of the Gaza war, the Houthi attacks in the Red Sea, and the repercussions of the war in Ukraine
The European Union (EU) said it would advance Egypt a little over USD1 billion in short-term financial aid to help stabilize the country’s economy. The advance amount of the loan is part of a bigger package worth 5 billion euros in loans. The second part of the package, which is yet to be adopted, would provide € 4 billion over the period 2024-27.
The loan is meant to address Cairo’s deteriorating fiscal situation and financial needs, notably after the outbreak of the Gaza war, the Houthi attacks in the Red Sea, and the repercussions of the war in Ukraine. The loan agreement stipulates that Egypt should continue 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.
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Egypt agreed last month to an expanded USD 8 billion support program with the International Monetary Fund and an 8-billion deal with the EU. The package unveiled in March seeks to boost cooperation and help curb migration from north Africa.
