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  • Tuesday, 13 January 2026

In response to media questions during the joint press conference with the European Investment Bank.. Minister of Planning, Economic Development and International Cooperation: Disbursement of €1 billion from the European Union next Thursday under the MFA budget support mechanism following the implementation of 16 measures under the National Structural Reform Program

Al-Mashat:

• Egypt is implementing more than 100 economic and structural policies and measures under the budget support mechanism to support the macroeconomy.

• The implemented reforms enhance economic and financial stability and improve the business environment and the competitiveness of the Egyptian economy.

• We will continue implementing further measures to ensure the sustainability of reform impacts and empower the private sector.

• Concessional financing mechanisms strengthen the state’s efforts to reduce short-term financial burdens and extend debt maturities.

• The new financing provides broader fiscal space for spending on social protection, health, and education in line with the objectives of Egypt’s Narrative for Comprehensive Development.

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, announced that the government has implemented 16 economic and structural measures under the first tranche of the second phase of the Macro-Financial Assistance (MFA) and budget support mechanism, which is scheduled to be disbursed next Thursday in the amount of €1 billion.

This came in response to media questions during the joint press conference held by the Ministry in conjunction with the visit of Ms. Gelsomina Vigliotti, Vice President of the European Investment Bank, to Egypt.

H.E. Dr. Al-Mashat added that a total of 38 reforms have thus been implemented under the National Structural Reform Program within the framework of the strategic partnership with the European Union: 22 measures under the first phase disbursed in January 2025 in the amount of €1 billion, and 16 measures under the tranche scheduled for disbursement this week. Accordingly, €3 billion remain to be disbursed in two tranches during 2026.

The Minister pointed out that the Macro-Financial Assistance and budget support mechanism, amounting to €5 billion, includes more than 100 nationally designed economic policies and measures implemented under the National Structural Reform Program. This comes as part of efforts to provide concessional and lower-cost financing alternatives compared to international markets, to support the budget and expand the available fiscal space for spending on various programs and projects, in implementation of the objectives of Egypt’s Narrative for Comprehensive Development.

H.E. Dr. Al-Mashat emphasized that this development reflects the depth of Egyptian-European relations, which are witnessing qualitative momentum with the support of the political leadership. She noted that the Macro-Financial Assistance and budget support mechanism comes within broader government efforts to implement the National Structural Reform Program, which aims to entrench macroeconomic stability, improve the business and investment climate, and advance the transition to a green economy.

H.E. Minister Al-Mashat continued: “The first tranche of the second phase is linked to 16 structural reforms that Egypt has already implemented during the current year under the National Structural Reform Program, in coordination with the relevant entities represented by (the Central Bank of Egypt; the Ministries of Finance; Planning, Economic Development and International Cooperation; Investment and Foreign Trade; Electricity and Renewable Energy; Water Resources and Irrigation; Environment; and Industry). These reforms contribute to strengthening macroeconomic stability through improving public financial management, developing medium-term budget frameworks, managing fiscal risks and public investment, in addition to supporting competitiveness and the business environment by improving mechanisms for allocating industrial land and facilitating investment licensing procedures. They also advance the green transition by enhancing sustainable water resource management, developing waste-to-energy policies, improving energy efficiency, and protecting the natural capital of the Red Sea, thereby supporting the achievement of sustainable economic development.”

It is worth noting that the Memorandum of Understanding for the second phase of the MFA mechanism was signed during the Egyptian-European Summit held in Brussels, the capital of Belgium, on 22 October 2025, worth €4 billion. This reflects the European Union’s confidence in the National Structural Reform Program and its support for the state’s efforts to boost economic and financial stability.