Egypt receives first tranche of EU’s Macro-Financial Assistance program

During the weekly press conference on Wednesday, Prime Minister Mostafa Madbouly revealed that Egypt has received the first installment of the European Union's €7.4 billion ($8 billion) financing package.

The €1 billion tranche was deposited into the Central Bank of Egypt last Friday as part of the financial assistance aimed at supporting the country’s fiscal stability and reform efforts.

The funding, part of the EU’s Macro-Financial Assistance (MFA) program, follows the European Commission’s decision in December to release the loan after Egypt met specific policy conditions.

This financial aid is intended to help Egypt cover a portion of its financing needs for the 2024/2025 fiscal year, while also supporting its ongoing reform agenda in alignment with the International Monetary Fund (IMF) program.

Madbouly acknowledged the economic challenges faced by Egypt in 2024, citing both internal and external factors that had contributed to the country’s difficulties. He emphasized that the government had responded effectively by implementing a range of policies and proactive measures to minimize the negative impacts of these challenges.

The Prime Minister also highlighted that Egypt had successfully repaid $39 billion in 2024, fulfilling all its financial obligations despite the pressures from the global economic environment. Looking ahead, he expressed confidence that 2025 would present a much lighter financial burden, with the government already formulating a comprehensive plan to address upcoming commitments.