Coronavirus: Eight macro-financial assistance programmes agreed to support enlargement and neighbourhood partners

_coronavirus 2020_

(Credit: Unsplash)

This article is brought to you in association with the European Commission.


As of today, the Commission, on behalf of the EU, has agreed Memoranda of Understanding (MoU) on macro-financial assistance (MFA) programmes with eight partners. The agreements are part of the €3 billion MFA package for ten enlargement and neighbourhood partners, aimed to help them limit the economic fallout of the coronavirus pandemic.

The ongoing and swift implementation of these programmes is an important demonstration of the EU’s solidarity with these countries at a time of unprecedented crisis.

Memoranda of Understanding have already been agreed with Albania, Georgia, Jordan, Kosovo, Moldova, Montenegro, North Macedonia and Ukraine. These documents have also been formally signed with four of them: Kosovo, Moldova, North Macedonia and Ukraine. Negotiations of the MoUs with the remaining two countries – Bosnia and Herzegovina, and Tunisia – are underway.

Valdis Dombrovskis, Executive Vice-President for an Economy that works for people, said: “Supporting our neighbours is essential during this time of crisis to keep the entire region stable. As part of the EU’s global response to the coronavirus pandemic, we are working to help our neighbouring countries to cushion the worst of its economic impact. These ‘crisis MFA programs’ will be provided on favourable terms on the basis of signed Memorandums of Understanding outlining concrete reform commitments. It will help the neighbouring countries to cover their external financing needs in 2020-21, given the difficulties in tackling the economic impact of the pandemic.”

Paolo Gentiloni, Commissioner for Economy, said: “The COVID-19 pandemic knows no borders and its unprecedented economic and social impacts affect countries around the world. Our enlargement and neighbourhood partners are severely affected, and as a Union we have the financial strength to help them limit the economic fallout of the pandemic. The Commission, on behalf of the EU, is working with ten partner countries to support their efforts and implement effective economic policies at a time of unprecedented crisis. Agreement has already been reached with eight partners in a demonstration of the EU’s solidarity.”

The MoUs provide for the policy actions to which the beneficiaries commit in order to receive the second tranche of assistance. Agreeing and signing the MoUs is an important step towards the first disbursement under the programmes, which is conditional on fulfilling the political pre-conditions, including the respect of democratic principles, human rights and the rule of law. Beneficiary countries should also benefit from an IMF financial assistance programme.

For Albania, the policy conditions for its €180 million MFA programme relate to strengthening public finance and the resilience of the financial sector, improving governance and fighting corruption, and enhancing social protection.

For Georgia, the policy conditions for its €150 million MFA programme relate to strengthening public finance management, improving governance, sector reforms, and labour market policies.

For Jordan, the policy actions for its €700 million MFA programmes are more comprehensive, as they cover two MFA operations. They cover public finance management, utilities, social and labour market policy, and governance,

For Kosovo, the policy conditions for its €100 million MFA programme relate to strengthening public finance and financial stability, addressing youth unemployment and improving good governance, and the fight against corruption.

For Moldova, the policy conditions for its €100 million MFA programme relate to strengthening public finance management, good governance and fight against corruption, and improving the business environment.

For Montenegro, the policy conditions for its €60 million MFA programme relate to strengthening public finance and the fight against corruption, enhancing financial stability, improving the business environment, and reforming social protection.

For North Macedonia, the policy conditions for its €160 million MFA programme relate to strengthening fiscal governance and transparency, the fight against corruption, enhancing financial sector supervision, improving the business environment, and tackling youth unemployment.

For Ukraine, the policy conditions for its €1.2 billion MFA programme are larger and more comprehensive and relate to strengthening public finance management, governance and rule of law, reform of the judiciary, competition in the gas market, improving the business climate and governance of state-owned enterprises.

Background

MFA is part of the EU’s wider engagement with neighbouring and enlargement countries and is intended as an exceptional EU crisis response instrument. It is available to enlargement and EU neighbourhood countries experiencing severe balance-of-payments problems. It demonstrates the EU’s solidarity with these countries and the support of effective policies at a time of unprecedented crisis.

The Decision on providing macro-financial assistance to ten enlargement and neighbourhood partners in the context of the COVID-19 pandemic was proposed by the Commission on 22 April and adopted by the European Parliament and the Council on 25 May 2020.

In addition to MFA, the EU supports the Neighbourhood and Western Balkans through several other instruments, including humanitarian aid, budget support, thematic programmes, technical assistance, blending facilities and guarantees from the European Fund for Sustainable Development to support investment in sectors most affected by the coronavirus pandemic.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Qualcomm to be the next target of EU antitrust regulators? China might be the answer

France breaks budget promises once again and the EU’s finance offices are shaking

COVID-19 shows why we must build trust in digital financial services

Amazon: our green is turning to ashes

EP President praises Nobel Peace Prize award to Denis Mukwege and Nadia Murad

Suriname’s climate promise, for a sustainable future

Medical students: catalysts to close the gender gap

As people return to work, here’s how we can make commuting more inclusive and sustainable

Safety fits into our palms: The role of mobile technology in healthcare systems and life saving

Keep Africa’s guns ‘from firing in the first place’, UN political chief urges

Algorithmic warfare is coming. Humans must retain control

Paris, Rome, Brussels and Frankfurt to confront Berlin over growth and the Athens enigma

How the institutional response to COVID-19 can prepare us for climate change

Germany is turning its old mines into tourist hotspots

Turkey’s Erdogan provokes the US and the EU by serving jihadists and trading on refugees

Yemen bus attack just the latest outrage against civilians: UN agencies

We need to protect 30% of the planet by 2030. This is how we can do it

Friday’s Daily Brief: UN chief in China, counter-terrorism, updates from Bangladesh, Mali and Mozambique

7 steps to becoming a ‘CEO Academy’

Merkel refuses to consider the North-South schism of Eurozone

Coronavirus: Commission adopts new exceptional support measures for the wine sector

MEPs vote for upgrade to rail passenger rights

Juncker and Tusk killed Greece on 07 July 2015 to meet the Commission’s summer vacation plan? #Grexit #Greferendum #Graccident

‘Protracted crisis’ in Venezuela leads to ‘alarming escalation of tensions’: UN political chief

Afghanistan: Civilian casualties exceed 10,000 for sixth straight year

A letter from Italy: Our insecurity in COVID-19 times

These coastal countries are sinking the fastest

Women still struggle to find a job, let alone reach the top: new UN report calls for ‘quantum leap’

‘Act now with ambition and urgency’ to tackle the world’s ‘grave climate emergency’, UN chief urges UAE meeting

European Commission statement on the adoption of the new energy lending policy of the European Investment Bank Group

A challenge for inclusion in the Dominican Republic’s health care services

There is no recipe for a healthy mental state

Outbreaks and pandemics periods can be stressful, but how can we turn it to a positive life-changing experience?

International World Summit Award calls for outstanding digital applications with impact on society from 178 UN member states

China greenlights first underwater high-speed railway

Three out of the past five Julys were the hottest on record

COP21 Breaking News_04 December: Commitments Made to Reduce Black Carbon, Methane and HFCs

Medical workforce migration in Europe – Is it really a problem?

Investing in rural women and girls, ‘essential’ for everyone’s future: UN chief

European Parliament speaks out against “killer robots”

10 million Yemenis ‘one step away from famine’, UN food relief agency calls for ‘unhindered access’ to frontline regions

These are India’s cleanest cities

EU Border and Coast Guard: new corps of 10 000 border and coast guards by 2027

7 lessons leaders should take from the COVID-19 crisis

We won’t win the online security war without people power

The world is a book and those who do not travel read only one page

Q&A on extraordinary remote participation procedure

EU Elections: new rules to prevent breaches of data used to influence elections

Mining the deep seabed will harm biodiversity. We need to talk about it

Congolese expelled from Angola returning to ‘desperate situation’: UN refugee agency

In West Africa, UN Security Council visits Côte d’Ivoire and Guinea-Bissau

JADE President opens JADE Spring Meeting 2014

Commission welcomes the political agreement on the transitional rules for the Common Agricultural Policy (CAP)

Cameroon: Clear ‘window of opportunity’ to solve crises rooted in violence – Bachelet

The EU Commission fails to draw the right conclusions about corruption

How youth and technology can drive Africa’s COVID-19 response

We are ‘burning up our future’, UN’s Bachelet tells Human Rights Council

How to change the world at Davos

5 ways to get your business ready for AI in 2020

UN, global health agencies sound alarm on drug-resistant infections; new recommendations to reduce ‘staggering number’ of future deaths

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s