|Author (Corporate)||European Commission: DG Economic and Financial Affairs|
|Series Details||COM (2020) 163|
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.
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:
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.
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Economic Governance | Situation, European Neighbourhood Policy [ENP]|
|Keywords||COVID-19 Outbreak, Macro-Financial Assistance [MFA]
|International Organisations||European Union [EU]|