On Monday 6 February, the European Commission proposed to provide up to €100 million of macrofinancial assistance to North Macedonia in the form of two loan tranches with a maximum maturity of 15 years, to help the EU candidate country meet its financial commitments.
Following Russia’s war of aggression against Ukraine, North Macedonia has experienced a rapid deterioration of its external balance, due to its heavy dependence on fuel and electricity imports, the EU institution said in a statement. Macrofinancial assistance would therefore contribute to covering its financing needs in 2023 and 2024.
In exchange for the assistance, the North Macedonian government will be required to implement reforms and measures agreed with the EU and enshrined in a memorandum of understanding (MoU), including reforms related to fiscal governance, tax policy, the business environment, energy efficiency, judicial reform and the fight against corruption.
The macrofinancial assistance accompanies a two-year support programme with the IMF worth €530 million.
At the height of the Covid-19 pandemic, North Macedonia benefited from macrofinancial assistance in the amount of €160 million (see EUROPE 12731/23).
See the Commission’s proposal: https://aeur.eu/f/58h (Original version in French by Mathieu Bion)