The European Commission, on behalf of the EU, has recently disbursed 125m euros in macro-financial assistance (MFA) to Bosnia and Herzegovina. This disbursement is part of the MFA 3 3 billion package for ten enlargement and neighborhood partners, which aims to help them respond to the economic impact of the COVID-19 pandemic. MFA support is provided through loans with very favorable rates. The program is a concrete demonstration of the EU’s solidarity with its partners to help respond to the economic impact of the COVID-19 pandemic.
Paolo Gentiloni, Commissioner for Economy, said: “This € 125 million disbursement of financial support represents an important act of solidarity with the people of Bosnia and Herzegovina. It is an important contribution towards repairing some of the economic and social damage caused by the COVID-19 pandemic. We look forward to working with national authorities in the coming months to provide the policy action needed to further enhance the country’s macroeconomic stability. “
“The disbursement of this first installment comes after the agreement and ratification of a Memorandum of Understanding (Memorandum of Understanding) between the Commission and Bosnia and Herzegovina. The Memorandum of Understanding sets out the specific policy measures that Bosnia and Herzegovina will implement to improve economic governance, financial sector stability, transparency and the fight against corruption, and the better functioning of the labor market. The disbursement of the second and final installment of € 125 million will be conditional on the implementation of these policy measures. “Implementing these policy measures will require close co-operation between the authorities of Bosnia and Herzegovina at all levels of government,” the EU Delegation to BiH said in a press release.
With this disbursement, the EU has successfully completed five of the 10 MFA programs in the € 3 billion COVID-19 MFA package and disbursed the first installments to all partners.
In addition to the MFA’s estimated 250m-euro loan, the EU has already provided 95m euros in grants to Bosnia and Herzegovina to support the country in its fight against the COVID-19 pandemic. In addition to the € 13.7 million EU4Health vaccine grant, the EU provided € 7.76 million to address medical needs (over 6 million pieces of personal protective equipment, 66 fans, 75 ECG monitors, 20 portable ultrasound machines and other equipment). € 73.5 million are committed to support socio-economic recoverybna