EU loans: Egypt secures €4 billion, Jordan gets €500 million boost

The European Parliament has approved two major financial assistance packages aimed at supporting Egypt and Jordan, endorsing loans worth €4 billion and €500 million respectively.

The macro-financial assistance (MFA) for Egypt was passed with 452 votes in favour, 182 against, and 40 abstentions, while the proposal for Jordan received overwhelming support with 571 votes in favour, 59 against, and 46 abstentions.

The financial support for Egypt stems from a broader €5 billion package proposed by the European Commission on March 15, 2024. This includes a short-term loan of €1 billion, already disbursed by the end of 2024, and a regular loan of €4 billion to be released in three instalments. 

The European Parliament’s approval formally endorses this long-term financial support plan.

As for Jordan, the €500 million loan aims to help the country meet its financing needs, support ongoing structural reforms, and contribute to fiscal consolidation efforts, in line with the EU’s strategic partnership with Amman.

These approvals reflect the EU’s continued commitment to supporting economic stability and reforms in key neighbouring countries, particularly in light of global financial pressures and regional challenges.