Arab Finance: The European Commission has disbursed €1.5 billion to Egypt under its Macro-Financial Assistance (MFA) initiative, reaffirming the EU's commitment to supporting the country’s economic reform and long-term macroeconomic stability, according to a statement.

This came after the commission affirmed that Egypt had fulfilled the conditions required to unlock the second tranche of funding.

These included implementing agreed economic policy reforms, maintaining progress under the International Monetary Fund (IMF) reform program, and meeting the political commitments outlined in the memorandum of understanding (MoU) between the EU and Egypt.

The reforms aim to foster Egypt's macroeconomic resilience, improve public financial management, enhance the business and investment climate, promote market competition, advance governance of state-owned enterprises, expand social protection, and accelerate the country's green transition.

Angelina Eichhorst, EU Ambassador to Egypt, commented: “The Macro-Financial Assistance program forms a central pillar of the EU–Egypt Strategic and Comprehensive Partnership, reflecting the EU’s recognition of Egypt as a strategic partner and an essential pillar of stability in the Mediterranean and the wider MENA region.”

Last week’s disbursement follows the €1 billion short-term MFA provided in December 2024 and the first €1 billion instalment under the current €4 billion program, disbursed in January 2026.

With this payment, the EU has provided €3.5 billion in MFA to Egypt since the launch of the partnership, with a final instalment of €1.5 billion expected once the remaining agreed conditions have been fulfilled.

The EU has committed a €7.4 billion support package for Egypt for the 2024–2027 period, comprising grants, loans and guarantees that promote economic resilience, investment, trade, green transition, migration cooperation, and human development.