The largest portion of the funding, €1 billion, will be allocated to macro-financial assistance.
The Egyptian government secured a significant financial boost from the European Union (EU), with the approval of presidential decrees regarding three financing agreements with the EU.
The largest portion of the funding, €1 billion, will be allocated to macro-financial assistance. This soft loan, which is expected to be disbursed before the end of the year, offers long repayment terms and low interest rates. It is the first tranche of a larger €5 billion package of concessional loans that will be disbursed over the next few years.
This soft loan is expected to help alleviate Egypt's external financing constraints, ease the government's balance of payments, and boost foreign exchange reserves. The funds will also be used to support macroeconomic stability, improve the business environment, and promote a green transition.
In addition to the macro-financial assistance, the EU has pledged €8 million to support Egypt's child protection systems. This funding will be used to combat child labor, ensure access to education and healthcare, and implement effective child protection frameworks.
Furthermore, the EU has agreed to provide €3 million to support the local manufacturing and development of vaccines and medicines. This investment aligns with Egypt's efforts to strengthen its healthcare sector and reduce reliance on imports.
