In an effort to stabilise Egypt’s economy, the EU said on Friday, April 12, that it will provide the country with a short-term financial aid loan of just over $1 billion.
The statement stated that the amount is a portion of a larger credit package totaling 5 billion euros.
The operation’s second component, which has not yet been approved, would give € 4 billion between 2024 and 2027.
The loan is formally intended to address Cairo’s worsening financial needs and condition, particularly in light of the events that have transpired in Gaza, the Red Sea Houthi attacks and the aftermath of the war in Ukraine.
.As a precondition Egypt should continue to make “concrete and credible steps towards respecting effective democratic mechanisms (including a multi-party parliamentary system) and the rule of law and guaranteeing respect for human rights,” the statement added.
Egypt agreed last month to an expanded $8 billion support programme with the International Monetary Fund and an 8-billion deal with the EU.
The package unveiled in March seeks to boost cooperation and help curb migration from north Africa.
