EU approves €4bn loan for Egypt

The European Parliament has approved the second tranche, worth €4 billion, of the European Union’s (EU) Macro-Financial Assistance (MFA) package for Egypt. The announcement was made by the Egyptian Ministry of Planning and Economic Development and International Cooperation in a statement following Tuesday’s session on April 1st.

Members of the European Parliament (MEPs) approved two proposals, granting loans of €500m to Jordan and €4bn to Egypt.

The MFA for Egypt was adopted by a vote of 452 in favor, 182 against, and 40 abstentions. The MFA for Jordan was passed with 571 votes in favor, 59 against, and 46 abstentions.

According to the European Commission, the decision to support Egypt with macro-financial assistance in the form of loans worth up to €5 billion was proposed on 15 March 2024, given Egypt’s economic and financial situation and its role as a stabilizing force in a volatile region. This breaks down into a short-term loan of up to €1bn—already disbursed at the end of 2024—and another, regular loan of up to €4bn to be disbursed in three installments. Parliament previously approved the proposal.