EU approves €4B MFA tranche for Egypt

Updated 4/3/2025 8:00:00 AM

Arab Finance: The European Parliament approved the second tranche worth €4 billion of the European Union's (EU) Macro-Financial Assistance (MFA) package for Egypt during its session on Tuesday, April 1st, the Egyptian Ministry of Planning and Economic Development, and International Cooperation announced in a statement.

In December 2024, the European Commission approved €1 billion in funding under the first phase worth €5 billion under the MFA, to be made available until 2027.

The support aligns with Egypt’s national structural reform program, which focuses on maintaining macroeconomic stability, enhancing the business environment, and driving the green transition.

European Parliament President Roberta Metsola stated on X that the vote aimed to provide financial assistance to Egypt and Jordan as part of Europe's efforts to promote peace and stability in the Middle East.

The EU’s total support package for Egypt amounts to €7.4 billion and is set to be disbursed through 2027.

It includes €5 billion within MFA, €1.8 billion in investment guarantees for European and Egyptian companies, and around €600 million for training, technical assistance, and capacity building.

The European Commission previously stated that the financial assistance would help Egypt address part of its fiscal needs, support macroeconomic stability, and advance its reform agenda in coordination with the International Monetary Fund (IMF).

The funds will be disbursed in three installments, each conditional on progress in implementing the IMF program and additional policy measures outlined in the memorandum of understanding (MoU) between the European Commission and Egyptian authorities.