Egypt negotiates €4 billion financing deal with EU

Egypt is in talks with the European Union (EU) to secure €4 billion ($4.2 billion) in financial assistance to support its ongoing reform efforts. The funds, which are expected to be allocated for budget support rather than specific projects, are part of Egypt’s broader strategy to stabilize its economy amid external challenges.

Minister of Planning, Economic Development, and International Cooperation Rania Al Mashat confirmed on January 21 that the deal is anticipated to be finalized by June 2025.

This potential agreement follows the EU’s approval of a €7.4 billion funding package for Egypt in March 2024, which includes €5 billion in concessional loans, €1.8 billion in investments, and €600 million in grants over three years. The deal is part of a wider wave of support for Egypt, with the country’s finance minister Mohamed Maait highlighting a total of $20 billion in funding from international partners and multilateral lenders.

Despite facing significant economic challenges, including a sharp decline in Suez Canal revenues and external instability affecting global trade, Egypt is pressing ahead with efforts to reduce its debt burden. Finance Minister Ahmed Kouchouk announced the country’s goal to raise nearly $3 billion by the end of the fiscal year in June 2025, as part of its ongoing economic recovery strategy.