The European Commission has signed a Memorandum of Understanding (MoU) with Montenegro and provided the first instalment of the support in the form of highly favourable loans worth €30 million, intended for limiting the economic fallout of the COVID-19 epidemic.

This is only part of the support available to Montenegro within of the Macro-Financial Assistance Programme worth up to €60 million. This form of support complements the previously approved €53 million, which the European Union granted to Montenegro for the procurement of urgent medical equipment and to assist socially underprivileged individuals, entrepreneurs, companies, the health sector and others that have been most seriously impacted by the COVID-19 crisis.

The disbursement of the second and final instalment loan support, up to the €60 million total , will be conditional on Montenegro meeting the requirements specified in the MoU, including strengthening public finance, fight against corruption, enhancing financial stability, improving the business environment, and social protection reform. The assistance programme will be available for a period of 12 months.

The Macro-Financial Assistance Programme for Montenegro is part of a €3 billion MFA package that the Commission proposed for ten enlargement and neighbourhood partners to help limit the economic fallout of the pandemic.