The European Parliament approved the EU Commission's proposal to grant Egypt a EUR 4 bn loan, which is set to be disbursed in three separate tranches, according to a statement from the bloc’s legislative body on Tuesday. The vote was passed with 452 members of the parliament voting in favour, while 59 voted against and 46 abstained.

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The loans are part of a wider EUR 5 bn macro-financial assistance package agreed inMarch last year, the first EUR 1 bn of which landed in state coffers at the end of December. The strategic and comprehensive partnership inked between Egypt and the EU also includes EUR 1.8 bn of “additional” investments under the Southern Neighborhood Economic and Investment Plan and EUR 600 mn in grants, including EUR 200 mn for migration management, all of which are set to be disbursed by 2027.

The concessional loans are designed to support macroeconomic resilience and stability, improve competitiveness and the business environment, and support the country’s green translation, according to a statement from the Planning and International Cooperation Ministry.

What’s next? The Planning and International Cooperation Ministry will meet and coordinate with national authorities and the EU to discuss timetables to conclude the disbursal of the loans and to finalize the structural reform package tied to the funding.

ALSO- The IMF disbursed a USD 1.2 bn tranche following the completion of the fourth review of Egypt’s USD 8 bn loan program, according to a cabinet statement.

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