The EU announced Friday (April 12) that it would lend Egypt little more than $1 billion in short-term financial aid to help stabilize the country’s economy.
The cash is part of a larger credit deal totaling 5 billion euros, according to the announcement.
The second component of the operation, which has yet to be accepted, would provide € 4 billion between 2024 and 2027.
Officially, the loan is intended to address Cairo’s deteriorating fiscal status and budgetary needs, particularly in light of the commencement of the Gaza war, Houthi attacks in the Red Sea, and the aftermath of the war in Ukraine.
As a prerequisite, Egypt must continue to take “concrete and credible steps towards respecting effective democratic mechanisms (including a multi-party parliamentary system) and the rule of law, as well as guaranteeing respect for human rights,” according to the statement.
Last month, Egypt agreed to an enhanced $8 billion support program with the International Monetary Fund and a $8 billion agreement with the EU.
The program, presented in March, aims to increase collaboration and assist reduce migration from North Africa.