The European Commission has signed a Memorandum of Understanding (MoU) with Kosovo paving the way for the first disbursement of €50 million in macro-financial assistance (MFA). A second instalment of €50 million will be disbursed later 2020 or early 2021.
MFA funds are being made available in the form of long-term loans on very favourable terms. The funds will contribute to Kosovo’s macroeconomic stability so that the government’s financial resources can be allocated to mitigate the severe socio-economic consequences of the coronavirus. The total MFA programme for Kosovo is worth up to €100 million.
Nataliya Apostolova, Head of the EU Office in Kosovo / EU Special Representative warmly welcomed the agreement and called on the Kosovo Assembly to proceed swiftly with its ratification, so as to avoid any delayed disbursement.
Nine policy conditions were agreed in the Memorandum of Understanding, ie measures should address public finance and financial stability, youth unemployment and good governance and the fight against corruption.