On Friday 12 April, the Economic and Financial Affairs Council approved short-term macrofinancial assistance to Egypt of up to €1 billion, to be disbursed in the form of loans under favourable terms made available in one instalment.
The aid is meant to address the deteriorating macro-fiscal situation and financing needs of the country over the recent months, notably after the outbreak of the Gaza war, the Houthi attacks in the Red Sea and the repercussions of Russia’s war of aggression against Ukraine, the EU Council said in a press release.
One of the preconditions for the provision of aid is that the Egyptian authorities take “concrete and credible” steps towards respect for the rule of law and the democratisation of the country, including “a multi-party system”, it added.
This macrofinancial assistance is part of an overall strategic partnership of €7.4 billion, including €5 billion in macrofinancial assistance, which was signed by EU representatives and the Egyptian authorities in mid-March in Cairo (see EUROPE 13373/6).
The European Commission is to propose a second macrofinancial assistance package of €4 billion to cover the period 2024-27.
Further information: https://aeur.eu/f/br5 (Original version in French by Mathieu Bion)