CAIRO – 25 August 2024: The Egyptian Cabinet approved several funding agreements with the European Union (EU), totaling over €1 billion. The largest portion of the funding, €1 billion, will be allocated to macro-financial assistance.
This soft loan, which is expected to be disbursed before the end of the year, offers long repayment terms and low interest rates. It is the first tranche of a larger €5 billion package of concessional loans that will be disbursed over the next few years.
The funds will be used to alleviate Egypt's external financing constraints, ease the government's balance of payments, and boost foreign exchange reserves. They will also support macroeconomic stability, improve the business environment, and promote a green transition.
In addition to the macro-financial assistance, the EU has pledged €8 million to support Egypt's child protection systems. This funding will be used to combat child labor, ensure access to education and healthcare, and implement effective child protection frameworks.
Furthermore, the EU has agreed to provide €3 million to support the local manufacturing and development of vaccines and medicines. This investment aligns with Egypt's efforts to strengthen its healthcare sector and reduce reliance on imports.
The EU's financial support reflects the growing partnership between the two countries. Earlier this year, Egypt and the EU signed a joint strategic and comprehensive partnership agreement that outlines a wide range of cooperation areas, including economic development, trade, and social issues.
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