Egypt Daily News – PM Dr. Madbouly revealed that the European Union transferred the first tranche of support worth one billion euros, which arrived at the Central Bank last Friday.
The Prime Minister added that private sector investments achieved remarkable growth during the first quarter of the fiscal year, reaching 63% of total public investments, which represents an increase of more than 30% compared to the same period last year.
Madbouly emphasized that the Egyptian economy is moving in a positive direction, thanks to reform economic policies and the confidence of international institutions in the state’s ability to face challenges.
The Commission has adopted a decision to disburse €1 billion in loans to Egypt following the fulfilment of the policy conditions agreed with the EU under the ongoing Macro-Financial Assistance (MFA).
It comes after the Commission concluded that Egypt has taken measures to strengthen macro-economic resilience by unifying its fragmented exchange rate and improving its public financial management, while scaling up its social safety programme.
Progress has been made in the business and investment environment, through increased transparency on investment and import conditions, and strengthening the role of the competition authority. Advancements have also been achieved in promoting the green transition by adopting the updated Egyptian Sustainable Energy Strategy until 2040 and advancing private sector participation in renewable energy production.
This MFA, along with the second operation of €4 billion that is currently under discussion with co-legislators, forms a fundamental part of the EU-Egypt Strategic and Comprehensive Partnership. It comes in response to multiple economic challenges over the last years, exacerbated by the complex geopolitical situation in the Middle East, where Egypt is a key pillar of stability and a strategic partner of the EU.
This financial support will help Egypt cover part of its financing needs for the fiscal year 2024/2025 and ensure macroeconomic stability, while supporting its home-grown reform agenda in conjunction with the ongoing International Monetary Fund (IMF) programme.
