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50 million in financial support to North Macedonia
Last week, The European Commission has stepped in to support North Macedonia with a €50 million loan, marking the first instalment of its ongoing Macro-Financial Assistance (MFA) initiative for the country.
This much-needed financial boost aims to help North Macedonia navigate the severe economic challenges brought on by the recent energy crisis, which has been exacerbated by Russia’s full-scale invasion of Ukraine. The funds are intended to stabilise the economy, support essential reforms, and complement the ongoing programme with the International Monetary Fund (IMF). This assistance also aligns with North Macedonia’s ambitions to progress on its path toward European integration.
The release of this €50 million tranche follows North Macedonia’s fulfilment of key policy commitments agreed upon with the EU. The country has made significant strides in public finance by establishing an independent Fiscal Council and enhancing public investment management. To boost public revenue, North Macedonia has implemented tax policy reforms to widen the tax base. The government has also advanced efforts to formalise the informal economy and has taken steps to improve energy efficiency. Additionally, the judiciary has been strengthened with the introduction of a new Strategy on Judicial Reform.
In total, the ongoing MFA operation for North Macedonia is valued at up to €100 million in loans. With the first €50 million now disbursed, a second tranche of the same amount remains contingent on continued progress in meeting the agreed policy conditions.
