European Commission Provides $1.7 Billion to Egypt to Support Economic Reforms

Brussels, July 24 (KUNA) -- The European Commission announced on Friday the disbursement of 1.5 billion euros ($1.7 billion) to Egypt under the Macro-Financial Assistance (MFA) program, representing the second of three scheduled tranches within the ongoing four-billion-euro ($4.55 billion) program.

In a statement, the Commission said, “This financial assistance will help cover part of Egypt’s financing needs and support its macroeconomic stability and the implementation of its economic reform program.” It clarified that the funding, provided in the form of concessional loans, would support the economic reform agenda in parallel with the International Monetary Fund (IMF) program.

The Commission added that this assistance “will also help alleviate pressures on Egypt’s external financial position, including those stemming from the repercussions of the current situation in the Middle East region.”

The Commission noted that Egypt had met all the necessary conditions for the disbursement of this tranche, including the implementation of agreed economic policy conditions with the European Union and taking concrete and credible steps toward activating democratic mechanisms, including a multi-party parliamentary system, strengthening the rule of law, and ensuring respect for human rights, alongside maintaining the IMF program as required for the release of MFA funds.

In this context, the Commission pointed out that Egypt had implemented economic reforms to enhance stability and economic resilience, including improving public financial management and strengthening foreign exchange market performance. It had also made progress in improving the business environment and competitiveness, particularly through strengthening the governance of state-owned enterprises and advancing the digital transformation of public services.

The Commission stated that the ongoing four-billion-euro ($4.55 billion) MFA program for Egypt, along with short-term financial assistance of one billion euro ($1.1 billion) disbursed at the end of 2024, form a core part of the strategic and comprehensive partnership between the European Union and Egypt, which was launched in March of the same year with a total financial support package of five billion euros ($5.68 billion). (End) A.R.N. / M.N.F.