EU okays €100 million loans for North Macedonia

 

BRUSSELS – The European Union, EU has said it will provide €100 million of macro-financial assistance in form of loan to North Macedonia.

The assistant  will contribute to supporting North Macedonia’s economic stabilisation and substantive reform agenda, the EU said, adding that the entire amount of the assistance shall be provided in the form of loans.

“The assistance will contribute to strengthening North Macedonia’s resilience in a challenging economic context.

“The economy of North Macedonia has been significantly affected by the recession caused by the COVID-19 pandemic and by the recent energy crisis, driven by Russia’s war of aggression against Ukraine and North Macedonia’s high dependency on imports of fuel and electricity. These circumstances have contributed to the country’s sizeable financing gap”, the EU said.

It noted that the macro-financial assistance accompanies a 24-month support programme concluded with the International Monetary Fund (IMF), of up to €530 million. It will contribute to covering North Macedonia’s financing needs in 2023 and 2024 as identified in the International Monetary Fund (IMF) programme.

The macro-financial assistance will be made available in two equal instalments.
A precondition for granting the macro-financial assistance is that North Macedonia respect effective democratic mechanisms, including a multi-party parliamentary system, and the rule of law, and guarantee respect for human rights.

The Commission said it will agree with the authorities of North Macedonia on clearly defined economic policy and financial conditions, focusing on structural reforms and sound public finances, to which the macro-financial assistance is to be subject.