Macro-financial assistance agreement provides for €80 million disbursement to North Macedonia
The Commission on behalf of the EU has signed a Memorandum of Understanding (MoU) with North Macedonia to pave the way for the disbursement of €80 million in macro-financial assistance (MFA). This is the first MoU signed as part of €3 billion MFA package that the Commission proposed for ten enlargement and neighbourhood partners to help them limit the economic fallout of the coronavirus pandemic.
MFA funds will be made available in the form of long-term loans on highly favourable terms. The funds will contribute to enhance macroeconomic stability and create space to allocate resources towards mitigating the severe negative socio-economic consequences of the coronavirus pandemic. The MFA programme for North Macedonia is worth up to €160 million.
Paolo Gentiloni, Commissioner for the Economy, said: “Today we signed a Memorandum of Understanding with North Macedonia, paving the way for the disbursment of 80 million euros in financial support. This is the first MoU signed as part of the 3 billion euros macro-financial assistance package in support of 10 countries in the EU’s neighbourhood. The EU is committed to fighting the coronavirus pandemic both within and beyond our borders. We stand in solidarity with North Macedonia: we are stronger together.”
The disbursement of the second and final instalment will be conditional on the implementation of the policy actions agreed between the EU and North Macedonia and set out in the MoU. Specifically, the MoU includes nine policy conditions related to strengthening fiscal governance and transparency, the fight against corruption, enhancing financial sector supervision, improving the business environment, and tackling youth unemployment. The assistance programme will be available for a period of 12 months.