The Central Bank of Egypt received the first tranche of €1 billion (1.03billion) last Friday from a €7.4billion 8.06 billion) financing package from the European Union, as announced by Prime Minister Mostafa Madbouly on Wednesday.
Details of EU Financing
- First Tranche: €1 billion transferred to the Central Bank of Egypt.
- Total Financing Package: €7.4 billion over 3 years.
- Financing Goals: Enhancing cooperation in renewable energy, trade, and security.
Breakdown of the Financing Package
- Concessional Loans: €5 billion.
- Investments: €1.8 billion.
- Grants: €600 million, including €200 million to address migration issues.
IMF Support
Egypt is awaiting the disbursement of 1.2billion from the International Monetary Fund (IMF) following an agreement at the expert level on the fourth review under the extended fund facility with Egypt, 8 billion.
GDP Growth
The Ministry of Planning and Economic Development announced a 3.5% growth in GDP during the first quarter of the 2024-2025 fiscal year, compared to 2.7% in the same quarter of the previous year.
Suez Canal Challenges
Activity in the Suez Canal continued to decline during the first quarter of the fiscal year, dropping by 68.4%, leading to a decrease in the number of ships passing through the canal and a reduction in its revenues.