Ammon News - The EU said Monday it would give Egypt another four billion euros ($4.5 billion) in aid in the form of loans to allow Cairo to meet part of its financial needs, along with an IMF loan programme already in place.

Provisional agreement on the European Union aid was reached between the Council of the EU representing the bloc's member states and the European Parliament. The two institutions have to formalise the agreement before a first disbursement can be released.

Early last year, the IMF expanded a 2022 loan package for Egypt from $3 billion to $8 billion, to help the country manage economic challenges amid regional instability.

The EU council said the European loan instalments for Egypt would be "linked to satisfactory progress with the implementation of both the IMF programme".

The EU and Cairo in March 2024 signed a "strategic partnership" which included financial assistance of five billion euros, of which the first billion was given over the following month. AFP