The European Union (EU) announced that it has decided to disburse a soft loan worth LE53 billion (one billion euros) to Egypt, which will help create more financial space for the government to continue spending on basic services for the population.
The EU said in a statement on Friday that the soft loan comes “As a result of the strategic and comprehensive partnership signed between President Abdel Fattah al-Sisi and the President of the European Commission, Ursula von der Leyen, in March 2024, where the two parties agreed on a loan package for financial assistance totaling LE265 billion (five billion euros).”
The statement added that the first package worth one billion euros was signed in June 2024 during the High-Level Investment Conference between Egypt and the European Union, in order to identify indicators related to the macroeconomy, population resilience, business environment for job creation, and green transformation.
It added that six months after the signing, Egypt has now completed the requirements of the first loan worth LE53 billion.
The EU’s Ambassador-designate to Egypt, Angelina Eichhorst, said that the soft loan is an “important tangible result of our strategic and comprehensive partnership following the successful investment conference in June.”
She added that the EU and Egypt are true partners, and that “Every day we are increasingly engaged in a genuine dialogue about our common interests, principles and objectives.”
Eichhorst pointed out that this first tranche of one billion euro of EU total financial assistance shows a closer cooperation than ever before, saying: “We will continue, together with the Member States, to work hard with Egypt to create jobs, to work towards a greener and more vibrant economy for all citizens, and for a better future on both shores of the Mediterranean.”
