The loans aim to address Egypt’s deteriorating public finances and meet its financial needs
Egypt received a pledge from European Union By providing one billion euros($1.07 billion) in the form of short-term financial aid to support the stability of the country’s economy.
Egypt has reached an agreement with International Monetary Fund Last month, it agreed on an expanded loan program worth eight billion dollars, and with the European Union on a multi-billion-dollar aid package to strengthen cooperation and help reduce migration, at a time when it is suffering from an economic crisis due to a chronic shortage of foreign currency.
The European Union explained in a statement that the value of one billion euros in short-term aid is part of a larger package of five billion euros that will be provided in the form of loans.
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Another four billion euros in long-term aid will be allocated during the period from 2024 to 2027, but the 27 member states of the bloc must approve it first.
The loans aim to address Egypt’s deteriorating public finance situation and meet its financial needs, especially after the outbreak of the Gaza war, the Houthi attacks in the Red Sea, and the repercussions of the Russian-Ukrainian war.
The European Union required Egypt to continue taking “concrete and credible steps towards respecting effective democratic mechanisms (including a multi-party parliamentary system) and the rule of law and ensuring respect for human rights.”
