Proposal for a Decision on providing Macro-Financial Assistance to enlargement and neighbourhood partners in the context of the COVID-19 pandemic crisis

Author (Corporate)
Series Details COM (2020) 163
Publication Date 22/04/2020
Content Type

Summary:

Proposal published by the European Commission on 22 April 2020, which allocates a €3 billion Macro-Financial Assistance (MFA) package to ten enlargement and neighbourhood countries aiming at helping them to limit the economic impact of the COVID-19 pandemic.

Further information:

Macro-Financial Assistance is part of the European Union's wider engagement with neighbouring and enlargement countries and is intended as an EU crisis response instrument. It is available to those partners experiencing severe balance-of-payments problems with policy conditionality. To benefit from an MFA, countries should meet certain political pre-conditions, and should also benefit from an IMF financial assistance programme.

This particular proposal - which followed a preliminary assessment of financing needs - provides for the MFA funds to be distributed as follows:

  • Albania - €180 million
  • Bosnia and Herzegovina - €250 million
  • Georgia - €150 million
  • Jordan - €200 million
  • Kosovo - €100 million
  • Moldova - €100 million
  • Montenegro - €60 million
  • North Macedonia - €160 million
  • Tunisia - €600 million
  • Ukraine - €1.2 billion.

The funds are to made available for 12 months in the form of loans on favourable terms to help these countries cover their immediate, urgent financing needs. Together with the IMF support, the funds can contribute to enhancing macroeconomic stability and providing space to allow a more effective allocation of resources.

This proposal adds to the overall approach set out by the European Commission for supporting partners across the world. The European Parliament's plenary endorsed the initiative on 15 May, followed by the Council of the European Union on 20 May.

Source Link https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:163:FIN
Related Link(s)
Commentary and Analysis
EPRS: At a Glance, May 2020: Macro-financial assistance to enlargement and neighbourhood partners in the coronavirus crisis https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_ATA(2020)649422

Official
EUR-LEX: SWD(2020)63: Staff Working Document accompanying the Initiative https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2020:63:FIN
European Parliament: Legislative Observatory: Procedure File for Proposal on Macro-Financial Assistance to enlargement and neighbourhood partners in the context of the COVID-19 pandemic crisis https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2020/0065(COD)
European Commission: Press Release, 22/04/2020: Coronavirus: Commission proposes €3 billion macro-financial assistance package to support ten neighbouring countries https://ec.europa.eu/commission/presscorner/detail/en/ip_20_716
Council of the European Union: Press Release, 05/05/2020: COVID-19: Council greenlights €3 billion assistance package to support neighbouring partners https://www.consilium.europa.eu/en/press/press-releases/2020/05/05/covid-19-council-greenlights-3-billion-assistance-package-to-support-neighbouring-countries/
European Parliament: Press Release, 15/05/2020: Partner countries get €3bn in loans to prop up economies affected by pandemic https://www.europarl.europa.eu/news/en/press-room/20200511IPR78816/
Council of the European Union: Press Release, 20/05/2020: COVID-19: Council adopts €3 billion assistance package to support neighbouring partners https://www.consilium.europa.eu/en/press/press-releases/2020/05/20/covid-19-council-adopts-3-billion-assistance-package-to-support-neighbouring-partners/

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