13th December 2023, Skopje – EUR 100 million as EU Macro-Financial Assistance, made available to the Republic of North Macedonia. Respective law was adopted by the Parliament, which provided for signing agreement between Republic of North Macedonia and the EU, after which the loan will be made available in two instalments, covering a 2-year period.
“EU funds will be used as reserves, foreign exchange market intervention or as direct budget support, all to the end of coping with the risks arising from the crisis. This is a substantial support in times of crisis, particularly given that the terms and conditions thereof are favorable, providing for savings in our Budget”, Minister of Finance, Fatmir Besimi pointed out, thereby expressing his gratitude to the EU and the EU citizens about their solidarity to our country.
Republic of North Macedoni has used EUR 160 million as the EU Macro-Financial Assistance in 2020 and 2021 already, aimed at managing the COVID-19 consequences. This EU instrument helps the countries restore a sustainable external financial situation, while encouraging economic adjustments and structural reforms.
New loan amounting to EUR 100 million will be made available in two installments, per EUR 50 million in 2024 and 2025 respectively.
“In fact, the opportunity to use these funds supplements the previously provided funds from the International Monetary Fund, based upon the sound policies of the countries. They speak in favor of the efforts we put in implementing the reforms given that they are related to both the progress of our accession to the EU and the liabilities towards IMF”, Minister Besimi said.
In addition to the Law on Borrowing by the Republic of North Macedonia from the European Union under the Loan Facility Agreement for Macro-Financial Assistance to the Republic of North Macedonia, other laws were adopted by the Parliament, the purpose of which is providing favorable loans for managing the consequences of the crisis, such as: the Law on Borrowing a Loan by the Republic of North Macedonia at KfW Development Bank, Law on Borring a Loan by the Republic of Macedonia at the International Bank for Reconstruction and Development – World bank and Law on Borrowing a Loan by the Republic of North Macedonia at the OPEC Fund for International Development under the Loan Agreement for the Sustainability and Resilience Program.
KfW Development Bank provides EUR 90 million for overcoming the crisis triggered by the armed conflict in Ukraine, as well as the energy crisis, leading to rising prices of products, both in Republic of North Macedonia and worldwide. OPEC Fund for International Development provides EUR 50 million as favorable loan aimed at improving the public service delivery quality, more productive jobs in the private sector and strengthened climate resilience. In addition, EUR 27.5 million is provided by the International Bank for Reconstruction and Development- World Bank for further implementation of the commenced reforms as regards the social protection and childcare system.