EU agrees to provide additional €4B in loans to Cairo

The European Council and European Parliament have reached a provisional agreement to grant Egypt €4 billion in macro-financial assistance (MFA) to help address its external financing needs.

This support, provided through medium- to long-term loans or grants, is extended to partner countries facing significant financial challenges. The funds will be disbursed in tranches and are contingent on Egypt implementing reforms required by the International Monetary Fund (IMF), which approved an $8 billion loan to Egypt in March 2024.

In addition to IMF-mandated reforms, Egypt must meet additional conditions agreed upon with the EU, including commitments to uphold human rights and democratic principles.

The agreement is pending formal approval by both the European Council and the European Parliament.

Egypt initially requested €5 billion in concessional loans from the EU in March 2024 and received €1 billion the following month. This new funding is expected to cover Egypt’s financing gap between July 2025 and June 2027. According to the European Council, the loan will be offered with favorable repayment terms, potentially including a grace period.