Egypt is in advanced negotiations with the European Union for a €4 billion loan (approximately EGP 208 billion), with expectations to finalize the agreement by June. The funding is intended to support Egypt’s budget as part of the country’s ongoing structural economic reform program, according to Rania Al-Mashat, Egypt’s Minister of Planning
This loan is part of a broader €5 billion package from the EU to Egypt, which includes a €1 billion disbursement received by the government in December 2024. The funding is aligned with Egypt’s national structural reform agenda, which focuses on three main pillars: ensuring macroeconomic stability, creating a supportive business environment to stimulate the private sector, and supporting the green transition.
Speaking on the sidelines of the 2025 World Economic Forum in Davos to Asharq Business, Al-Mashat explained that the foreign borrowing for 2025 will be directed toward budget support rather than specific projects.
In early 2024, Egypt signed a strategic partnership with the European Union, which included a financial package worth €7.4 billion in grants and loans to be disbursed through 2027.
According to a statement from the European Commission, this financial assistance will help Egypt address part of its funding needs for the current fiscal year, ensuring macroeconomic stability and supporting the implementation of Egypt’s reform agenda alongside its ongoing agreement with the International Monetary Fund (IMF).
Private Sector Funding Surpasses Government Loans
For the first time, funding directed towards Egypt’s private sector has exceeded that allocated to the government, with a total of $4.2 billion in private sector financing, as reported by Al-Mashat.
Additionally, Egypt is set to begin negotiations with the European Union in April 2025 to secure up to €4 billion in funding to further support its budget.
