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BRUSSELS – The Commission has adopted a proposal to grant a €3 billion macro-financial assistance (MFA) program to ten enlargement and neighborhood partners to help them limit the economic fallout from the coronavirus pandemic . Of the proposed amount, 750 million euros will be intended for the Western Balkan countries.
The proposal, following a preliminary assessment of financing needs, provides 180 million euros for Albania, 250 million euros for Bosnia and Herzegovina, 100 million euros for Kosovo, 60 million euros for Montenegro and 160 million euros for North Macedonia.
Another amount of 2.25 billion euros will be allocated to Jordan, Tunisia, Moldova, Georgia and Ukraine.
According to the European Commission, Serbia was informed of the financing possibility, but decided not to apply for emergency liquidity assistance from the IMF, a prerequisite for obtaining the MFA. N1 reports.
The AMF funds will be made available for 12 months in the form of highly concessional loans to help these countries cover their immediate and urgent financing needs. With the support of the International Monetary Fund, these funds can help strengthen macroeconomic stability and create space to allocate resources to protect citizens and mitigate the negative socio-economic consequences of the coronavirus pandemic. This instrument also remains available for other eligible countries experiencing balance of payments difficulties.
This proposal is part of the “Team Europe” strategy, the EU’s response to support the efforts of partner countries in the fight against the coronavirus pandemic. According to the press release, this is an important demonstration of EU solidarity with these countries in a time of unprecedented crisis.
“Supporting our neighbors is essential during this time of crisis to maintain the stability of the entire region. As part of the EU’s global response to the coronavirus pandemic, we must help our neighboring countries cushion the worst of its economic impact. These “crisis MFA programs” will help 10 countries ensure macroeconomic stability and protect their citizens and businesses during the crisis,” said Valdis Dombrovskis, European Commission Executive Vice-President for an Economy that Works for People .
According to Economy Commissioner Paolo Gentiloni, European solidarity must not stop at the Union’s borders.
“Because in this global crisis, we stand or fall together. Today, the European Commission is taking decisive action to help ten of our neighbors in their fight against coronavirus. I call on the European Parliament and the Council to quickly adopt this important package,” he said.
The Commission’s proposal is subject to adoption by the European Parliament and the Council of the EU. Given the urgent need for this support, the Commission is counting on the cooperation of the co-legislators to ensure rapid adoption of the proposal, the press release said.
After the adoption of the proposal, the Commission is ready to disburse the first tranche as quickly as possible after the adoption of the MFA decision and after the agreement on a memorandum of understanding with each partner country. The second tranche could be disbursed in the fourth quarter of 2020 or the first half of 2021, provided that the related policy measures have been implemented in a timely manner.
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