EU to announce $8 bln financing package for Egypt next week

Ahram Online , Wednesday 13 Mar 2024

The European Union (EU) will provide Egypt with a €7.4 billion (over $8 billion) package varying between grants and loans. The package is meant to shore up Egypt's economy from the the repercussions of the Israel war on Gaza and the conflict in Sudan, Financial Times (FT) reported on Wednesday.

EU headquarters before an EU summit in Brussels. Photo: AP


The package includes about €1 billion in prompt assistance, according to the London-based newspaper.

FT said that the package comes amid concerns that the escalation in Gaza and Sudan may feed the challenges the country's economy is facing and raise migration pressures in Europe.

The package extends over 2027. It will be announced during the visit the European delegation is scheduled to pay to Egypt on Sunday.

The delegation includes the President of the European Commission Ursula von der Leyen,  along with the prime ministers of Greece, Italy, and Belgium.

Egypt has started to receive financing packages from several international financial institutions to address the negative impacts of the war in Gaza on the country’s economy. Egypt is still grappling with the repercussions of the Russian-Ukrainian war.

The IMF has recently announced the expansion of its Extended Fund Facility (EFF) loan programme it approved for Egypt in December 2022. Accordingly, the financing package expanded to $8 billion, up from $3 billion, with the first and two reviews under the programme being completed in March.

Moreover, Minister of Finance Mohamed Maait stated this week that Egypt will receive a financing package worth $20 billion from its international partners over the coming period.

This package includes the $8 billion the EU will announce next week, $3 billion from the World Bank, and $4 billion from Japan, the UK, and others.

Additionally, Egypt has signed a deal with the UAE worth $35 billion to develop the coastal zone of Ras El-Hekma, under which Egypt has already received $10 billion. It will receive the remainder amount within two months. Furthermore, $11 billion of Emeriti deposits at the Central Bank of Egypt will be directed to investment in the project.

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