25 May 2020
€750 million of the EU’s €3 billion macro-financial assistance (MFA) package goes to five Western Balkan economies as a targeted response in tackling the effects of the coronavirus pandemic

The European Commission has adopted a proposal for a €3 billion macro-financial assistance (MFA) package to ten enlargement and neighbourhood partners, out of which five are from the Western Balkans region, to help them to limit the economic fallout of the coronavirus pandemic.

The package comes as the EU's robust and targeted response to support partner countries' efforts in tackling the coronavirus pandemic. It represents an important demonstration of the EU's solidarity at a time of unprecedented crisis.

The plan, following a preliminary assessment of financing needs, provides for the MFA funds to be distributed for the Western Balkan economies as follows:

• Albania (€180 million);
• Bosnia and Herzegovina (€250 million);
• Kosovo* (€100 million);
• Montenegro (€60 million); and
• North Macedonia (€160 million).

The MFA funds were designed to be available for 12 months in the form of loans on highly favourable terms to help these economies cover their immediate, urgent financing needs. Together with the International Monetary Fund's support, the funds can contribute to enhancing macroeconomic stability and creating space to allow resources to be allocated towards protecting citizens and mitigating the coronavirus pandemic's negative socio-economic consequences. This instrument also remains available for other eligible countries experiencing balance-of-payments difficulties.

The Commission's proposal was subject to adoption by the European Parliament and the Council of the EU that happened on 25 May 2020. Following the adoption of the proposal, the Commission initiated the disbursement procedure upon the agreement on a Memorandum of Understanding (MoU) with each beneficiary economy, envisaging disbursement of the second instalment in the fourth quarter of 2020 or in the first half of 2021, provided that the policy measures attached to it have been implemented in a timely manner.

So far, the MoUs were signed with: Kosovo*, Montenegro, North Macedonia, Albania and Bosnia and Herzegovina, and Western Balkan economies are receiving tranches in accordance with their MoUs.