February 7 (SeeNews) - The European Commission said it proposed to provide up to 100 million euro ($107.3 million) in macro-financial assistance (MFA) to North Macedonia to support the country's economy in 2023 and 2024.
"Following Russia’s unprovoked invasion of Ukraine, the country’s external balance has deteriorated rapidly because of its high dependency on imports of fuel and electricity. North Macedonia also faces large external debt repayment needs in 2023 in a context of challenging financing conditions," the Commission said in a statement on Monday.
The funding will be provided in the form of loans, which would be repaid in two installments. If the European Parliament and the Council approve the proposal, it will go into effect, as long as the policy requirements outlined in a memorandum of understanding between North Macedonia and the EU, are met, according to the statement.
The EU provides MFA to partner countries that are experiencing a balance of payments crisis as a complement to assistance from the International Monetary Fund (IMF). To benefit from MFA, partner countries must commit to reforms and respect values such as human rights, democracy and the rule of law.
($ = 0.934 euro)