Egypt to ink €1B loan agreement under EU’s €5B MFA

Updated 6/24/2024 1:03:00 AM
Egypt to ink €1B loan agreement under EU’s €5B MFA

Arab Finance: Egypt is set to sign a long-term concessional loan agreement with the European Union (EU) worth €1 billion under the EU’s macro-financial assistance (MFA) and budget support efforts, as per a statement by the Ministry on International Cooperation.

The agreement is slated to be inked during the upcoming Egypt-EU Investment Conference.

The funding will be provided in the second half of 2024 as the first tranche of the €5 billion MFA the EU earmarked to Egypt, Minister of International Cooperation Rania Al-Mashat stated.

She added that the remaining €4 billion will be provided over the period between 2025 and 2027.

In the same vein, Egypt signed a $131 million financing agreement with the African Development Bank (AfDB) to promote private sector investments as well as support economic diversity and green transition. The 21-year-term loan term agreement has a grace period of eight years.

This came on the sidelines of the bank’s Annual Meetings held in Kenya this month.

Furthermore, Egypt is set to secure $100 million from the Korean Economic Development Cooperation Fund (EDCF). This was announced on the sidelines of the 2024 Korea-Africa Summit held from June 3rd to 5th.

The North African country is also in talks with the Asian Infrastructure Investment Bank (AIIB) to secure a $300 million financing.

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