Financial Times: The European Union is preparing an aid package for Egypt worth $8 billion
The Financial Times reported on Wednesday that the European Union is preparing an aid package worth 7.4 billion Euros ($8.08 billion) for Egypt aimed at supporting its economy, amid fears that the war in Gaza and Sudan will exacerbate financial problems in Egypt.
The Financial Times newspaper reported that the President of the European Commission, Ursula von der Leyen, will travel to Cairo next Sunday, along with the prime ministers of Greece, Italy, and Belgium, to put the final touches on the agreement and announce it.
Moody’s, the credit rating agency, had revised its outlook for the Egyptian economy to positive, with a rating of CAA1.
The agency said, in a statement: The direct and very large foreign investment contribution provided by the UAE government will significantly enhance Egypt’s economic foreign exchange reserves to cover the external financing gap until the fiscal year ending in June 2026.
Egypt is currently witnessing significant inflation due to the change in the exchange rate of the US dollar against the Egyptian pound.
This directly affects the prices of goods and services in Egypt, to the point that some have become obsessed with buying large quantities of goods, before they witness an expected rise in their prices during the month of Ramadan.
