EP approved the issuance by the European Union of new loans to the Balkans and Ukraine

The European Parliament approved the allocation of macro-financial loans to several regions, including the Balkans and Ukraine, in the amount of up to 3 billion euros against the backdrop of the new coronavirus pandemic, the European Parliament said in a plenary session on Friday.

“Parliament on Friday approved 3 billion euros in loans to help EU neighbors and partners deal with the consequences of COVID-19,” the release said.

Earlier, the EC proposed a package of this assistance and agreed upon the Council of the EU countries. It is assumed that the largest part of this loan package is intended for Ukraine – up to 1.2 billion euros.

  • Tunisia may receive 600 million euros,
  • Bosnia and Herzegovina – 250 million euros,
  • Jordan – 200 million euros,
  • Albania – 180 million euros,
  • Northern Macedonia – 160 million euros,
  • Georgia – 150 million euros,
  • Kosovo and Moldova – 100 million euros,
  • Montenegro – 60 million euros.

It was reported that the European Union will need to conclude memorandums of understanding with partners, recipients of loans, which establish the conditions for issuing money. Typically, tranches of loans from macro-financial assistance are allocated when the recipient country fulfills certain conditions, including reforms.

Loans can be taken within a year after they become available. Moreover, the “maximum average term” of their return will be 15 years, as previously reported.

It was noted that funds would be provided in the form of loans “on very favorable terms” to help meet urgent financing needs that had increased due to the fight against the proliferation of COVID-19.

The EC, after agreeing on memoranda of understanding, will be ready to promptly forward the first tranches of loans. The second tranches, in her opinion, can be allocated in the fourth quarter of this year or in the first half of 2021.