EU allocates 5 billion euros to support Egyptian economy

EU allocates 5 billion euros to support Egyptian economy

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Wed, 14/11/2012 - 16:18

The European Union has announced its approval for a two year, 5 billion euro support package for the Egyptian economy from EU financial institutions.

The announcement, posted by presidential spokesperson Yasser Ali on Facebook, came after a meeting between President Mohamed Morsy and Catherine Ashton, the EU’s high representative for foreign affairs and security policy.

Ali said in the statement that the institutions contributing to the package are the European Investment Bank, which would offer 2 billion euros, the European Bank for Reconstruction and Development with 2 billion euros, and other European countries would provide one billion euros.

Egypt is currently holding negotiations with the International Monetary Fund for a US$4.8 billion loan to resolve the budget and balance of payments deficit.

Ashton stressed that the EU is committed to supporting Egypt, adding that the EU’s support would reassure global and European investors and financial institutions.