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Daily News Egypt
03-04-2025
- Business
- Daily News Egypt
EU approves €4bn loan for Egypt
The European Parliament has approved the second tranche, worth €4bn, of the European Union's (EU) Macro-Financial Assistance (MFA) package for Egypt. The announcement was made by the Egyptian Ministry of Planning and Economic Development, and International Cooperation in a statement following Tuesday's session on April 1st. Members of the European Parliament (MEPs) approved two proposals, granting loans of €500m to Jordan and €4bn to Egypt. The MFA for Egypt was adopted by a vote of 452 in favour, 182 against, and 40 abstentions. The MFA for Jordan was passed with 571 votes in favour, 59 against, and 46 abstentions. According to the European Commission, the decision to support Egypt with macro-financial assistance in the form ofloans worth up to €5bn was proposed on 15 March 2024, given Egypt's economic and financial situation and its role as a stabilising force in a volatile region. This breaks down into a short-term loan of up to €1bn – already disbursed at the end of 2024 – and another, regular, loan of up to €4bn to be disbursed in three instalments. Parliament previously approved the proposal. For Jordan, this marks the EU's fourth MFA effort since 2013. It is intended to help cover the country's residual financing needs, support its structural reforms, and bolster its fiscal consolidation efforts. The Commission announced an additional financial package in January 2025 to help Jordan address existing financial and other challenges. A pre-condition for the EU granting financial assistance to Jordan is that it respects effective democratic mechanisms – including a multi-party parliamentary system – the rule of law, and guarantees for respect of human rights. Rapporteur Celine Imart (EPP, France) said, 'This vote underlines Parliament's support for our partners. The money for Jordan can be delivered quickly, and Parliament will enter into negotiations with member states on the proposal for Egypt with a strong mandate to make a swift agreement. Helping our partners means promoting European interests in an unstable region.' The EU recently approved and disbursed the second tranche, which is part of a wider EUR 5bn macro-financial assistance package. Egypt received the first part of the package in late December and was expected to work with the EU to receive the remaining EUR 4bn by June. The EUR 5bn in concessional loans are part of a broader package of loans, grants, and investments the country is receiving from the EU through 2027.
Zawya
02-04-2025
- Business
- Zawya
Members of the European Parliament (MEPs) approve new financial aid package for Egypt and Jordan
On Tuesday, MEPs approved two proposals granting Jordan and Egypt loans worth €500 million and €4 billion respectively. The macro-financial assistance (MFA) for Egypt was adopted by Parliament by 452 votes in favour, 182 against and 40 abstentions. The MFA for Jordan was passed by 571 votes in favour, 59 against and 46 abstentions. Given Egypt's critical economic and financial situation and its role as an important stabilising presence amid geopolitical tensions in an increasingly volatile region, the Commission proposed to support the country on 15 March 2024 with macro-financial assistance in the form of loans worth up to €5 billion. These break down into a short-term loan of up to €1 billion – already disbursed at the end of 2024 – and another, regular, loan of up to €4 billion to be disbursed in three instalments. Parliament approved the proposal. For Jordan this is the fourth MFA effort by the EU since 2013. It should help cover the country's residual financing needs, support its structural reforms, and shore up its fiscal consolidation efforts. In January 2025, the Commission announced an additional financial package to help Jordan deal with existing financial and other challenges. A pre-condition for the EU granting financial assistance shall be that Jordan respects effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees for respect of human rights. Quote Rapporteur Celine Imart (EPP, France), said: « This vote underlines Parliament's support for our partners. The money for Jordan can be delivered quickly, and Parliament will enter into negotiations with member states on the proposal for Egypt with a strong mandate to make a swift agreement. Helping our partners means promoting European interests in an unstable region.' Next steps The MFA package for Jordan now needs to be formally approved by the Council before it can take effect. On financial aid for Egypt, negotiations between Council and Parliament are expected to start soon. Background These loans are part of financial support packages concluded with EU partner countries struggling with financial, economic, societal challenges, to help with structural political and economic reforms. Distributed by APO Group on behalf of Delegation of the European Union to Egypt.
