Cairo – Mubasher: Egypt inked a facility deal valued at EUR 5 billion with the European Union (EU), according to a recent press release.
Rania El-Mashat, Egypt’s Minister of International Cooperation, highlighted that the financing follows the signing of the first tranche of Macro-Financial Assistance (MFA) to support the overall economy and budget deficit.
This MFA, which amounted to EUR 1 billion, was signed by El-Mashat and Valdis Dombrovskis, Executive Vice-President of the European Commission, during the Egyptian-European Investment Conference.
The minister stated that the MFA, valued at EUR 5 billion, aligns with commitments announced during the Egyptian-European Summit last March, totalling EUR 7.40 billion.
The first tranche stood at EUR 1 billion will be disbursed in the second half (H2) of 2024, out of the EUR 5 billion allocated by the EU within the mechanism.
The remaining tranches, aggregating EUR 4 billion, are scheduled for disbursement from 2025 to 2027, featuring favourable financing terms with long repayment periods and concessional interest rates.
El-Mashat pointed out that this concessional financing significantly lowers costs compared to international market rates, hence boosting the government's fiscal space to stabilise the overall economy and indirectly reducing the cost of credit for the private sector.
She affirmed that the government is implementing reforms, policies, and measures to enhance fiscal efficiency and support safety nets and social protection. The Arab Republic aims to boost transparency levels and create a conducive environment for local and foreign investments.
