European Union to disburse second $1.2bn tranche to Egypt

The European Union is set to disburse €1 billion ($1.2 billion) to Egypt next Thursday, marking the second tranche of a €5 billion ($5.8 billion) financial support package for the country’s economy, according to the minister of planning, economic development and international cooperation.

Speaking at a press conference on Tuesday (13 January 2026), Rania Al-Mashat said the payment follows an initial €1 billion tranche that was released in late December 2024.

She confirmed that a third tranche valued at €1.5 billion ($1.75 billion) is scheduled to be disbursed in mid-2026, with a fourth tranche of the same amount expected by the end of the year.

The €5 billion financing forms part of a broader €7.4 billion ($8.6 billion) package announced by the European Union in 2024 to support Egypt. The package includes €5 billion in concessional loans.

Al-Mashat also referred to an agreement reached last year between the European Parliament and EU member states to provide financial assistance to Egypt within the framework of a strategic partnership. Under that arrangement, the total value of aid amounts to €5 billion.

Egypt received €1 billion as a short-term loan in late 2024, while the remaining €4 billion ($4.65 billion) is expected to be disbursed in the coming period. The repayment period for the loan is set to extend for up to 35 years.

The minister said the upcoming disbursement reflects continued cooperation between Egypt and European institutions under the agreed support framework.