Cairo – Mubasher: The European Union (EU) is preparing a financial aid package of EUR 7.4 billion for Egypt in the shape of grants and loans through 2027.
Around EUR 1 billion are set to be disbursed immorality, while EUR 4 billion is tied to reforms to be taken under Egypt’s loan programme with the International Monetary Fund (IMF), and would require approval by EU member state, according to the Financial Times.
The remainder of the package would be drawn from various EU funding streams, European officials stated.
President of the European Commission Ursula von der Leyen is set to visit Cairo on 17 March 2024 with the Greek, Italian, and Belgian prime ministers to announce the deal.
The deal comes in line with the EU’s assistance plans for northern African countries, which aims to avoid economic instability in Europe’s neighbourhood and rein in irregular migration from Africa.
The EU’s financial aid agreement is set to include support for the Egyptian energy sector and assistance to deal with the rising number of Sudanese refugees in the country.
The agreement also promises to help Egypt fortify its border with Libya, EU officials said.
Egypt finalised an $8 billion financing package with the IMF earlier in March.
During a special monetary policy meeting today, the Central Bank of Egypt (CBE) announced a 6% increase in interest rates.
The official exchange rate between the US dollar and the Egyptian pound hit a historic high, surpassing EGP 50.
