Egypt: Council agrees position on providing macro-financial assistance
Member states’ representatives (Coreper) approved the Council’s position (negotiating mandate) on a decision to grant EUR 4 billion of macro-financial assistance (MFA) to Egypt. The Council position reflects the Commission proposal without changes.
Together with the IMF programme for the period 2024-2027, the MFA would help Egypt cover part of its external financing gap.
The disbursement of the EU loan would take place in three instalments, with the release of each instalment linked to satisfactory progress with the implementation of both the IMF programme and in relation to a number of additional policy measures to be agreed between the European Commission and the Egyptian authorities.
Following the approval of the Council’s negotiating mandate, the presidency can enter interinstitutional negotiations with the European Parliament with a view to reaching a common position on this proposal. The European Parliament adopted its negotiating mandate on 1 April 2025.
On 15 March 2024, the Commission proposed a macro-financial assistance operation to Egypt for an overall amount of EUR 5 billion in concessional loans, following the request of Egypt on 12 March 2024. The MFA was divided into two parts amounting to EUR 1 billion and EUR 4 billion respectively.
The first EUR 1 billion loan for Egypt, that was approved in April 2024, was meant to cover part of its financing needs for the fiscal year 2024/2025 and ensure macroeconomic stability. The second MFA loan of EUR 4 billion will address the deteriorating macro-fiscal situation and financing needs of the country and should cover Egypt’s financing gap between July 2025 and June 2027. It will be granted at terms that allow Egypt to repay the loan during a long period, including a possible grace period
These two MFA operations are part of the Strategic and Comprehensive Partnership signed with Egypt on 17 March 2024 during a visit of the President of the Commission and five other European leaders.
see full document here – https://data.consilium.europa.eu/doc/document/ST-7835-2025-INIT/en/pdf
See also – https://www.eeas.europa.eu/egypt/european-union-and-egypt_en?s=95
