COMMISSION STAFF WORKING DOCUMENT Background Analysis per beneficiary country Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of macro-financial assistance to third countries in 2023
Date: 2024-06-17
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: European neighbourhood policy, economic stabilisation, macro-financial assistance, macroeconomics, multiannual financial framework, structural adjustment, third country

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 17.6.2024  SWD(2024) 150 final  COMMISSION STAFF WORKING DOCUMENT Background Analysis per beneficiary country Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of macro-financial assistance to third countries in 2023 {COM(2024) 240 final/2}  
 
 
LIST OF ABBREVIATIONS 

AA 

CPI 

Association agreement 

Consumer price index 

DCFTA 

Deep and Comprehensive Free Trade Area 

ECF 

EFF 

EU 

EUR 

FDI 

IMF 

LFA 

MFA 

MoU 

OJ 

PFM 

PPP 

SDR 

SOE 

SWD 

y-o-y 

Extended Credit Facility 

Extended Fund Facility 

European Union 

Euro 

Foreign direct investment 

International Monetary Fund 

Loan facility agreement 

Macro-financial assistance 

Memorandum of understanding 

Official Journal of the European Union 

Public finance management 

Public-private partnership 

Special drawing rights 

State-owned enterprise 

Staff working document 

Year on year 

1 

 
 
 
Contents 

Introduction .................................................................................................................................................. 3 

Background analysis of beneficiaries of macro-financial assistance ........................................................ 4 

1.  Moldova ................................................................................................................................................. 4 

1.1 Implementation of macro-financial assistance ................................................................................. 4 
1.1.1 Recent macro-financial assistance operations .............................................................................. 4 
1.1.2 Policy conditionality ...................................................................................................................... 5 

2.  Ukraine .................................................................................................................................................. 9 

2.1 Implementation of macro-financial assistance ............................................................................... 10 
2.1.1 Recent macro-financial assistance operations ............................................................................ 10 
2.1.2 Policy conditionality .................................................................................................................... 14 

3. 

Jordan ................................................................................................................................................. 26 

3.1 Implementation of macro-financial assistance ............................................................................... 26 
3.1.1 Recent macro-financial assistance operations ............................................................................ 26 
3.1.2  Policy conditionality ................................................................................................................ 27 

4.  North Macedonia ................................................................................................................................ 31 

4.1 Implementation of macro-financial assistance ............................................................................... 32 
4.1.1 Recent macro-financial assistance operations ............................................................................ 32 
4.1.2  Policy conditionality ................................................................................................................ 33 

Annex 1: MFA operations by date of decision, 1990-2023 .......................................................................... 38 
Annex 2: Status of disbursements made by date of decision at end-December 2023 ................................... 39 
Annex 3: MFA amounts authorised by year, 2006-2023 (EUR million) ...................................................... 45 
Annex 4: MFA amounts disbursed by year, 2006-2023 (EUR million) ....................................................... 46 

2 

 
 
 
 
 
 
 
 
INTRODUCTION 

This  staff  working  document  (SWD)  complements  the  Commission’s  report  to  the 
European  Parliament  and  the  Council  on  the  implementation  of  macro-financial 
assistance (MFA) to third countries in 20231. 

In  light  of  the  prolonged  war  and  the  increased  funding  requirements  of  Ukraine,  2023 
saw  the  implementation  of  an  exceptional  support  package  to  Ukraine.  This  provided  a 
new  highly  concessional  loan  of  EUR 18  billion  under  an  ‘MFA+’  operation.  The 
operation  was  disbursed  in  monthly  instalments  throughout  the  year,  with  the  last 
instalment  concluded  in  December,  conditional  on  Ukraine  meeting  ongoing  political 
prerequisites,  carrying  out  satisfactory  reporting  and  completing  20  structural  policy 
conditions.  This  was  the  largest  MFA  support  ever  provided  to  a  country,  making  it  a 
natural focus in this edition of the annual report and corresponding SWD.  

The ongoing MFA operation for Moldova was increased via a ‘top-up’. The aim was to 
continue  supporting  the  country  by  helping  bridge  its  external  financing  gap  in  an 
increasingly  challenging  economic  situation,  which  was  exacerbated  by  Russia’s 
continued  war  of  aggression  in  Ukraine.  The  decision  was  adopted  by  Parliament  and 
entered  to  force  in  September,  with  the  first  additional  instalment  disbursed  in  October 
2023.  

In  May  2023,  the  ongoing  MFA  to  Jordan  was  successfully  concluded  with  the 
disbursement of the third and final instalment. An MFA operation for North Macedonia 
was proposed by the Commission in January 2023 and adopted in June. The Commission 
gave  a  positive  evaluation  to  North  Macedonia’s  statement  of  compliance  and  the 
disbursement of the first instalment is planned for May 2024. 

For  each  beneficiary  country,  the  report  provides  more  detailed  information  on:  (i) 
implementation  of  the  corresponding  MFA  operations;  and  (ii)  the  underlying  policy 
conditionality and progress regarding its implementation. 

The annexes include overview tables on disbursements of MFA operations since 1990 by 
date of adoption of the decisions, and tables on MFA commitment and payment amounts 
in the period 2006-2023, by year and by region2. 

1 This document is based on information available up to April 2024. 

2  The  document  and  the  annexes  distinguish  between  authorised  amounts,  which  are  the  amounts  made 
available to the beneficiary country as per the MFA Decision, and  disbursed amounts, which are the 
amounts actually extended to the beneficiary country. 

3 

 
 
 
 
BACKGROUND ANALYSIS OF BENEFICIARIES OF MACRO-FINANCIAL ASSISTANCE3 

1.  MOLDOVA 

The  Moldovan  economy  turned  the  corner  in  2023  after  five  consecutive  quarters  of 
contraction, with the preliminary estimate of real GDP growth of 0.7% in 2023 after the 
sharp contraction of -5.0% in 2022. Growth returned in the third quarter of 2023, on the 
back of a strong rebound in the agricultural sector, following the severe drought in the 
previous  year,  and  notable  gains  in  the  IT  industry,  which  is  emerging  as  one  of  the 
economy’s  most  dynamic  sectors.  In  addition,  inflation  was  on  a  downward  trend 
throughout  2023,  falling  steeply  from  28.7%  on  average  in  2022  to  13.4%  in  2023. 
Moldova was significantly affected by the start of the Russian war of aggression against 
neighbouring  Ukraine  in  2022  and  the  ensuing  energy  and  food  price  shocks.  These 
events  severely  diminished  households’  purchasing  power,  eroded  investor  confidence 
and  undermined  export  growth.  On  the  fiscal  side,  the  high  energy  prices  required 
additional  spending  on  subsidies  for  the  most  vulnerable  consumers  and  ultimately 
resulted  in  a  widening  of  the  budget  deficit,  which  narrowed  slightly  to  5%  of  GDP  in 
2023.  The  current  account  deficit  also  increased,  driven  by  a  sizeable  negative  trade 
balance  but  narrowed  in  2023  while  remaining  significant.  The  Commission’s  2023 
Autumn Forecast projected a current account deficit of 13.3% in 20234. In light of these 
developments,  Moldova  received  increased  financial  support  from  its  international 
partners,  including  the EU, whose support took the form of macro-financial  assistance. 
Reflecting how Moldova’s economy continued to be directly and indirectly hit by Russia’s 
continued  war  of  aggression  in  Ukraine,  in  June  2023  the  EU  decided  to  increase  its 
ongoing support. The EU granted Moldova candidate status in June 2022, supporting its 
ambition  for  future  EU  integration.  In  December  2023,  EU  leaders  decided  to  open 
accession  negotiations  with  Moldova,  inviting  the  Council  to  adopt  the  negotiation 
framework once Moldova had taken the relevant steps on rule of law and anti-corruption 
as set out in the Commission’s report. 

1.1 Implementation of macro-financial assistance 

1.1.1 Recent macro-financial assistance operations 

Since  2014,  Moldova  has  received  assistance  under  three  MFA  operations.  A  total  of 
EUR 495 million was made available under the corresponding MFA operations, of which 
EUR 332.5  million  have  so  far  been  disbursed.  Overall,  progress  has  been  positive, 
although full implementation and disbursements under the 2017-2020 operation (covered 
by Decision (EU) 2017/1565) were hindered by the challenging political situation in the 
country at the time. This resulted in the third and final instalment being cancelled, as the 
MFA’s availability period ended before the conditions agreed in the MoU were fulfilled. 
Following  the  outbreak  of  the  pandemic,  Moldova  also  received  assistance  under  the 
EU’s  EUR 3  billion  COVID-19  MFA  package  to  10  enlargement  and  neighbourhood 
countries.  Currently,  against  the  backdrop  of  the  challenging  geopolitical  situation  and 
risks  to  energy  security,  which  put  additional  pressure  on  Moldova’s  macroeconomic 
stability,  the  country  continues  to  benefit  from  an  ongoing  MFA  that  first  entered  into 
force on 18 July 2022.  

3 This section quotes statistics supplied by national authorities and other relevant sources. 

4 The public debt ratio grew by 2.2 points to 37.2% of GDP in 2023, driven by the large primary deficit and 

higher interest payments on short-term domestic debt. 

4 

 
 
 
Reflecting  how  Moldova’s  economy  was  directly  and  indirectly  further  hit  by  Russia’s 
war of aggression in Ukraine, on 24 January 2023 the Commission adopted a proposal to 
increase  the  ongoing  MFA  to  Moldova  by  EUR 145  million,  of  which  up  to  EUR 100 
million  in  loans  and  EUR 45  million  in  grants  (the  ‘additional  MFA’).  In  June  2023, 
Parliament  and  the  Council  adopted  a  corresponding  decision  covering  the  additional 
assistance  (Decision  2023/4597  final).  This  additional  financial  assistance  under  the 
MFA  comes  as  part  of  a  larger  EU  support  package  to  Moldova  announced  by  the 
Commission  President  in  November  2022.  This  also  contained  EUR 105  million  to  be 
disbursed in 2023 and beginning of 2024 via a budget support operation. 

The support under these MFA  operations is  provided in  conjunction  with  the resources 
from  international  financial institutions and bilateral  donors, including  the International 
Monetary  Fund.  In  May  2022,  the  IMF’s  December  2021  programme  for  Moldova  of 
USD 558 million under the Extended Credit Facility/Extended Fund Facility (ECF/EFF), 
was  increased  by  USD  260  million  in  view  of  the  significant  impact  on  the  Moldovan 
economy of Russia’s war on Ukraine. In December 2023, the IMF concluded its fourth 
programme review, assessing overall progress as positive. The IMF noted the authorities’ 
strong  ownership  of,  and  firm  commitment  to,  reforms,  which  warranted  the  Fund’s 
further  support.  The  Executive  Board  also  approved  extending 
the  ECF/EFF 
arrangements by 6 months until 19 October 2025. In addition, the board approved a new 
arrangement  Under  the  Resilience  and  Sustainability  Facility  (RSF)  of  about  US$173 
million.  This  arrangement  was  to  support  Moldova’s  efforts  to  strengthen  its  resilience 
against climate shocks, support energy sector reforms, enhance domestic financial-sector 
preparedness and mobilise sustainable finance. 

On 21 December 2023, the former governor of the National Bank of Moldova, Octavian 
Armașu, was abruptly and unexpectedly dismissed. The procedure by which the former 
governor was dismissed is a source of concern and may pose risks to the independence of 
the central bank. Technical discussions with both the EU and the IMF have followed on 
the importance of good economic governance, strengthening central bank independence 
and  following  due  processes,  notably  as  regards  the  appointment  and  dismissal  of  a 
central bank governor.  

1.1.2 Policy conditionality 

In  line  with  the  broad  objectives  of  EU-Moldova  cooperation  under  the  Association 
Agreement and the Deep and Comprehensive Free Trade Area (DCFTA) Agreement, the 
ongoing MFA operation, including the additional MFA, focuses on several key areas of 
reform.  These  include  the  fight  against  corruption  and  the  rule  of  law,  public  finance 
management,  public-sector  and  financial-sector  governance,  strengthening  the  business 
climate, and in view of the energy crisis, important energy sector reforms. Until now, the 
authorities  have  been  making  good  progress  on  meeting  the  policy  conditionality, 
enabling three subsequent MFA disbursements under the ongoing operation. 

Several  conditions  under  the  MFA  call  on  the  authorities  to  advance  the  fight  against 
corruption.  This  involves  improving  the  institutional  structure  of  the  various  anti-
corruption  agencies,  including  a  clear  delimitation  of  competences  between  the  Anti-
Corruption  Prosecutor’s  Office  and 
the  National  Anti-Corruption  Agency  and 
establishing task forces to fight high-level corruption and organised crime.  

The  rule  of  law  and  justice  sector  reforms  are  long-standing  priorities  under 
EU-Moldova  cooperation,  e.g.,  under  the  EU-Moldova  Association  Agreement  and 
supported  by  the  MFA.  In  particular,  Moldova  has  been  scoring  poorly  on  judicial 

5 

 
independence and transparency.  In line with Venice Commission recommendations and 
best international practices, the authorities have launched a comprehensive assessment of 
the  members  of  the  self-governing  bodies  of  judges  and  prosecutors  (‘pre-vetting’). 
Although  the  process  is  not  yet  complete,  significant  progress  has  been  made  on  the 
assessment  of  the  Superior  Council  of  Magistracy  and  the  Superior  Council  of 
Prosecutors.  Completion  of  the  pre-vetting  of  candidates  for  the  Superior  Council  of 
Magistrates  and  the  Superior  Council  of  Prosecutors  and  the  bodies/colleges  of  the 
Councils  has  been  postponed.  It  is  now  expected  under  the  last  disbursement  of  the 
ongoing MFA before its availability ends in January 2025. 

Moldova  has  made  significant  progress  on  strengthening  public  finance  management 
(PFM). It has a new PFM strategy in place, supported by extensive assessment, in close 
cooperation with international partners, and followed by an open public consultation. To 
address  the  chronic  issue  of  budget  under-execution,  especially  for  capital  expenditure, 
the  authorities  have  also  implemented  new  legislation  on  public  investment  projects, 
intended to help Moldova improve its planning of capital budgets and increase execution 
of public investments.  

Several  actions  under  the  current  MFA  are  designed  to  strengthen  and  improve 
Moldova’s business climate. The country has taken important steps to  set priorities and 
actions  in  this  area.  These  involve  adopting  the  digital  transformation  strategy  and  the 
national  programme 
increasing 
competitiveness,  including  improving  access  to  finance  for  local  businesses.  In  spring 
2024, Moldova is expected to adopt an overarching national strategy for the development 
of  the  economy.  The  strategy  will  focus  on  the  internationalisation  of  local  businesses 
and the promotion of foreign direct investment. 

the  promotion  of  entrepreneurship  and 

for 

Important  progress  has  also  been  made  to  improve  Moldova’s  medium-  to  long-term 
energy security and develop sustainable energy markets. The protracted energy crisis that 
began  in  October  2021  exposed  several  structural  weaknesses  in  Moldova’s  energy 
sector, aggravated by Russia’s weaponization of energy (Russia cut off energy deliveries 
to  Moldova  at  the  time  of  its  invasion  of  Ukraine).  The  authorities  have  significantly 
increased  the  country’s  gas  storage  capacity,  diversified  gas  supply,  adopted  concrete 
plans to prepare for the heating seasons and have committed to making further progress 
on  unbundling  to  strengthen  the  country’s  energy  market  (Moldova’s  key  commitment 
under the Energy Security Secretariat). Moldova  is also seeking to  facilitate the market 
for renewable energy, e.g., by transposing the EU Renewable Energy Directive. 

Finally, in line with the DCFTA, the authorities implemented important amendments to 
the new Customs Code and adopted the implementing regulation.  As a result, the Code 
entered into force on 1 January 2024.  

With Moldova being a new candidate for EU membership, progress on MFA conditions 
can  also  help  bring  the  country  closer  to  the  EU  and  support  not  only  its  economic 
convergence but also its alignment with the EU acquis. To that effect, further progress on 
the rule of law, good governance and anti-corruption is particularly important. Progress 
on the relevant MFA conditionality also helps Moldova advance on its implementation of 
the  recommendations  in  the  annual  enlargement  report  and  the  Economic  Reform 
Programme. The MFA also remains in line with the government’s long-term objectives.  

6 

 
MFA MOLDOVA 
(entry into force 18 July 2022 - end of availability period 18 January 2025) 

Decision (EU) 
2022/563 

Amount (EUR 
million) 

First instalment 

Second instalment 

Third instalment 

EUR 50 million (15 
grants; 35 loans) 

EUR 50 million (10 
grants; 40 loans) 

EUR 50 million (5 
grants; 45 loans) 

Implementation 

Disbursed (8/2022) 

Disbursed (4/2023 
grants, 5/2023 loans)  

Pending 

Policy conditions 

Total n.: 3 

Total n.: 6 

Total n.: 6 

Rule of law and the 
fight against 
corruption 

Reform on adopting 
legislative 
amendments on asset 
recovery, especially 
on international 
cooperation: fulfilled 

Reform on 
appointment of vacant 
management positions 
in several anti-
corruption 
institutions: fulfilled 

Reform on adopting a 
new asset recovery 
programme: fulfilled 

Reform on assessment 
of candidates for 
membership of 
judiciary and 
prosecution self-
administration bodies 
(pre-vetting): broadly 
fulfilled 

Reform on delimiting 
competences between 
the Anti-Corruption 
Prosecutor’s Office 
and the National Anti-
Corruption Centre 
(with clear division of 
tasks between high- 
level and petty 
corruption cases): 
pending 

Financial-sector 
governance 

Reform on legislative 
amendments 
concerning electronic 
payment system: 
fulfilled 

Energy sector 

Reform on 
establishing gas 
storage capacity: 
fulfilled 

7 

Reform on increasing 
the capacity of the 
Energy Efficiency 
Agency and 
Energocom: pending 

Reform on ensuring 
progress towards full 
transposition of the 
Energy Community 
acquis, especially on 

 
 
 
 
 
 
 
Public-sector 
governance 

Business 
environment 

Reform on legislation 
concerning public 
investment projects: 
fulfilled 

Reform on adopting a 
new public finance 
management strategy: 
fulfilled 

Reform on legislative 
amendments to the 
new Customs Code, 
its implementing 
regulation and entry 
into force: broadly 
fulfilled 

Remarks 

The political pre-condition1 for granting the 
EU’s macro-financial assistance was met; a 
positive track record on the ongoing IMF 
programme was ensured 

unbundling: pending 

Reform on adoption 
of a new public 
procurement 
programme: pending 

Reform on amending 
the Law on free 
economic zones: 
pending 

Reform on adopting a 
new strategy for 
combating undeclared 
work: pending 

Disbursement of the 
third and final 
instalment is expected 
for 2024, subject to a 
continued positive 
track record with the 
IMF programme, and 
fulfilment of the 
political pre-condition 
and of the policy 
conditions 

MFA TOP-UP MOLDOVA 
(entry into force 5 September 2023 - end of availability period 18 January 2025) 

Decision (EU) 2023/4597 final  First instalment 

Second instalment 

Amount (EUR million) 

EUR 72.5 million (22.5 
grants; 50 loans) 

EUR 72.5 million (22.5 
grants; 50 loans) 

Implementation 

Disbursed (10/2023)  

Pending  

Policy conditions 

Total n.: 6 

Total n.: 6 

Energy sector 

Energy action plan for winter 
2023-2024: fulfilled 

Law transposing the 
Renewable Energy Directive: 
pending 

8 

 
 
 
 
Law on full vetting: pending 

New call for applicants for 
membership of the colleges of 
the Superior Council of 
Magistrates and of the 
Superior Council of 
Prosecutors: fulfilled 

Review and update the 
existing interinstitutional 
agreements between the 
different anti-corruption and 
law enforcement agencies: 
pending 

Entry into force of the 
Customs Code: pending 

Adoption of national strategy 
for the development of the 
economy and of the national 
industrialisation programme: 
pending 

Delineation of duties between 
the Ministry of Economic 
Development and 
Digitalisation and the Public 
Property Agency: pending 

Disbursement of the second 
additional instalment is 
expected for the third quarter 
of 2024, subject to a continued 
positive track record with the 
IMF programme, and 
fulfilment of the political pre-
condition and of the policy 
conditions 

Adoption of digital 
transformation strategy: 
broadly fulfilled 

Adoption of national 
programme for the promotion 
of entrepreneurship and 
increasing competitiveness 
2023-2026: broadly fulfilled 

Concept paper on reforming 
the National Employment 
Agency: fulfilled 

Adoption of a new public 
procurement programme: 
fulfilled 

The political pre-condition2 
for granting the EU’s macro-
financial assistance was met; a 
positive track record on the 
ongoing IMF programme was 
ensured 

Rule of law 

Fight against corruption 

Business climate 

Public-sector governance 

Remarks 

2.  UKRAINE 

Russia’s  full-scale  war  of  aggression  is  taking  a  heavy  toll  on  Ukraine,  whose 
macroeconomic  performance  was  muted  already 
these 
unprecedented  circumstances,  the  international  community,  and  notably  the  European 
Union and its Member States, have demonstrated their solidarity and steadfast support. 
In  particular,  Ukraine’s  financing  gap  for  2023  was  closed  thanks  to  considerable 
support from international partners, in particular the EU’s macro-financial assistance+ 
(MFA+),  which  provided  a  total  of  EUR  18  billion  in  highly  concessional  loans,  thus 

times.  Under 

in  peace 

9 

 
 
 
making the EU’s financial contribution the largest by any international partner in 2023 
and since the start of Russia’s war of aggression in general. 

Since the beginning of 2023, the economy has regained some ground, with the National 
Bank  of  Ukraine  estimating  real  GDP  growth  at  5.7%  following  the  GDP  decline  of 
close  to  30%  in  2022.  This  better-than-expected  rebound  reflects  multiple  factors, 
including  the  rapid  revival  of  the  energy  system.  Overall,  this  relatively  strong 
performance  underscores  the  adaptability  and  resilience  of  Ukrainian  consumers  and 
businesses amidst the challenges of a war environment. While official reserves suffered a 
depletion by almost USD 9 billion in the first months of the war, the subsequent sizeable 
international financial support helped restore the reserves to almost USD 38.5 billion by 
end-2023. This allowed the national bank to start monetary easing in mid-2023, with a 
series of rate cuts bringing it down to 16% in December 2023, and to gradually remove 
some  of  the  foreign  exchange  restrictions  introduced  in  the  aftermath  of  the  invasion. 
Confidence in the hryvnia strengthened further throughout 2023. Against this backdrop, 
Ukraine  avoided  further  direct  monetary  financing  of  the  state  budget  in  2023.  This  is 
also a condition under the IMF programme. In addition, on 3 October 2023, the national 
bank shifted to a managed float system for the hryvnia, marking the first important step 
towards liberalising the exchange rate according to the  bank’s ‘Strategy for easing FX 
restrictions,  transition  to  greater  exchange  rate  flexibility  and  return  to  inflation 
targeting’5. 

to  SDR  11.6  billion  (equivalent 

The  IMF  Executive  Board  approved  on  31 March  2023  a  48-month  Extended  Fund 
Facility  (EFF)  arrangement  with  access 
to 
USD 15.6 billion,  or  about  577  per  cent  of  Ukraine’s  quota).  The  authorities’  IMF-
supported programme aims to: (i) anchor policies that sustain fiscal, external, price and 
financial  stability  at  a  time  of  exceptionally  high  war-related  uncertainty;  (ii)  support 
economic recovery; and (iii) enhance governance and strengthen institutions to promote 
long-term growth in the context of reconstruction and Ukraine’s path to  EU accession. 
Two programme reviews were successfully  completed in  2023, and  there  was  a further 
review  in  the  first  quarter  of  2024,  with  a  solid  track  record  in  meeting  the  IMF’s 
conditions.  This  allowed  access  to  close  to  USD  4.5  billion  at  end-2023  and  close  to 
USD 5.4 billion at end-March 2024.  

In  November  2023,  the  European  Commission  issued  a  recommendation  to  open 
accession  negotiations  with  Ukraine.  In  December  2023,  EU  leaders  decided  to open 
accession  negotiations with  Ukraine  and  invited  the  Council  to  adopt  the  negotiation 
framework once Ukraine had taken the relevant steps set out in the Commission’s report 
of 8 November 2023. 

2.1 Implementation of macro-financial assistance  

2.1.1 Recent macro-financial assistance operations 

Since  the  start  of  Russia’s  war  of  aggression  against  Ukraine,  overall  support  from  the 
EU and the Member States to Ukraine and to cater for the needs of Ukrainians fleeing the 
war has reached over EUR 98 billion6. In 2022 alone, Ukraine received EUR 7.2 billion 
in  macro-financial  assistance  from  the  EU.  Emergency  MFA  loans  of  EUR 1.2 billion 

5  The  public  version  of  the  strategy  can  be  found  at:  Strategy_for_easing_FX_restrictions_07-07-

2023_eng.pdf (bank.gov.ua). 

6 Factsheet: EU solidarity with Ukraine (europa.eu). 

10 

 
 
were disbursed in two tranches in March and May 2022, just weeks after the start of the 
war. Also in 2022, the EU adopted two exceptional MFA operations in loans for Ukraine 
of  up  to  EUR 1  billion  and  an  additional  one  of  up  to  EUR 5  billion;  these  were  fully 
disbursed.  The  legal  acts  governing  the  exceptional  MFA  operations  included  the 
possibility to provide a subsidy to cover the interest rate costs related to the loans upon 
request  by  the  Ukrainian  authorities,  making  the  loans  even  more  favourable.  Given 
Ukraine’s timely submission of such a request and the availability of budgetary resources 
under  Regulation  (EU)  2021/947(3),  the  Commission  confirmed  to  the  Ukrainian 
Minister  of  Finance  on  29 June  2023  the  granting  of  an  interest  rate  subsidy  for  the 
charges due in the year 2023 and again in 2024 (from which onwards the necessary funds 
are provided through the Ukraine Facility). 

On 9 November 2022, the Commission  made a formal proposal  for a  regulation  of the 
European Parliament and of the Council establishing an instrument to provide support to 
Ukraine for 2023 (macro-financial assistance+)7. Parliament and the Council adopted the 
MFA+ Regulation on 14 December 2022 and it entered into force on 17 December8. The 
MFA+ instrument ensured more predictable, continuous, orderly and timely financing of 
up  to  EUR 18  billion  in  highly  concessional  loans  to  help  Ukraine  meet  its  short-term 
funding  needs  in  2023.  Policy  conditionality  and  stringent  reporting  requirements,  as 
reflected in the memorandum of understanding, remained attached to the disbursements.  

The  Member  State  Committee  on  Macro-Financial  Assistance  endorsed  the  MoU 
underpinning  this  exceptional  MFA  operation  in  its  meeting  on  9 January  2023.  The 
MoU  featured  a  total  of  20  policy  conditions  in  the  areas  of  macro-financial  stability, 
structural reforms and good governance, the rule of law and energy, carefully selected to 
ensure both feasibility and relevance. Ukraine and the European Commission signed the 
MoU on 16 January, and it entered into force on the same day. Disbursement of the first 
instalment  of  EUR 3  billion  took  place  on  17 January  2023.  The  disbursement  was 
conditional  on  Ukraine’s  continued  fulfilment  of  the  political  pre-condition  and 
satisfactory  implementation  of  the  reporting  requirements.  Disbursement  of  the 
following  instalments  is  additionally  linked  to  progress  on  implementing the  structural 
policy  conditionality  agreed  in  the  MoU.  Disbursement  of  the  second  instalment  of 
EUR 1.5 billion  took  place  on  21  March.  The  third  instalment  was  provided  in  three 
tranches  of  EUR 1.5  billion,  disbursed  on  25 April,  23 May,  and  22 June  respectively. 
This  followed  the  EEAS  and  the  Commission’s  favourable  assessment  of  Ukraine’s 
satisfactory  progress  towards  meeting  the  agreed  conditionality.  In  the  same  vein,  the 
fourth instalment was disbursed in monthly tranches of EUR 1.5 billion each on 25 July, 
22 August and 22 September, again based on a favourable assessment of progress with 
the  conditionality.  The  fifth  and  penultimate  instalment  provided  for  two  monthly 
tranches  of  EUR 1.5  billion,  each  with  disbursements  taking  place  on  23  October  and 
22 November. 

To secure release of the full amount of support available under the instrument, Ukraine 
had to  fulfil or broadly  fulfil  all structural  policy conditions  agreed in  the MoU (rather 

7 The Commission package of 9 November consists of three elements: (i) a Regulation that establishes the 
MFA+  instrument;  (ii)  a  technical  amendment  to  the  Financial  Regulation  to  allow  for  optimal 
borrowing for Ukraine through the diversified funding strategy; and (iii) a technical amendment to the 
Regulation  on  the  MFF  2021-2027,  which  extends  the  use  of  the  headroom  to guarantee  the  MFA+ 
loans to Ukraine. 

8  Regulation  (EU)  2022/2463  of  the  European  Parliament  and  of  the  Council  of  15 December  2022 
establishing an Instrument for providing support to Ukraine for 2023 (macro-financial assistance+), OJ 
L 322, 16 December 2022, p. 1. 

11 

 
 
than  demonstrating  progress  in  this  respect,  as  had  been  the  case  for  the  previous 
instalments).  Against  the  background  of  a  positive  corresponding  assessment,  the 
Commission  adopted  a  decision  on  15 December  2023  to  release  the  sixth  and  final 
instalment of EUR 1.5 billion to Ukraine; this was disbursed on 21 December 2023. By 
disbursing  the  total  amount  available  under  the  MFA+  instrument,  the  EU  provided  a 
crucial  contribution  to  financing  Ukraine’s  substantial  external  funding  gap  in  2023  in 
the  current  unprecedented  circumstances.  The  EU  was  the  international  partner  making 
the highest financial contribution to Ukraine in 2023. 

In contrast to the standard MFA set-up, the MFA+ instrument was not made conditional 
on an International Monetary Fund disbursing programme (no arrangement was in place 
at the time). However, it benefited from close cooperation with the Fund. In early 2023, 
the  IMF  adopted  changes  to  its  financing  assurances  policy  that  addressed  previous 
barriers to designing an ‘upper credit tranche’- quality adjustment programme in situations 
of  exceptionally  high  uncertainty9.  These  changes  allowed  for  the  IMF’s  closer 
engagement  with  Ukraine,  notably  through  the  new  four-year  Extended  Fund  Facility 
(EFF)  arrangement  worth  SDR  11.6  billion,  i.e.,  about  USD  15.6  billion,  approved  by 
the IMF Executive Board on 31 March 2023. On 11 December, the IMF Executive Board 
concluded the second review of the EFF  arrangement, which paved the  way for another 
disbursement  of  about  USD  890  million.  For  the  Commission,  very  close  cooperation 
with the IMF and other competent international financial institutions on support to, and on 
economic and policy analysis of, Ukraine remains a priority. 

The  MFA+  instrument  strengthened  the  concessional  nature  of  the  EU’s  support  to 
Ukraine through a 10-year grace period with no repayment of the principal before 2033, a 
longer-than-usual loan maturity of up to 35 years, and a possible subsidy of the interest 
rate  costs  at  least  until  end  of  2027.  This  high  degree  of  concessionality  of  financing 
under  the  MFA+  helped  to  contain  fiscal  pressures.  To  illustrate  this  positive 
development,  analysis  by  the  Ukrainian  Ministry  of  Finance  indicated  that  the  cost  of 
funding state debt decreased over the first 8 months of 2023 by 0.92 percentage points to 
6.95%. In parallel, the average maturity of Ukraine’s state and state-guaranteed debt has 
increased by almost 11 months since the beginning of the year, to 9.35 years10. The IMF 
considers  Ukraine’s  public  debt  to  be  sustainable  on  a  forward-looking  basis.  This  is 
contingent on strong policy commitments and assurances for highly concessional lending 
during and after its programme, and on credible assurances of debt relief. 

Using  the  Commission’s  diversified  funding  strategy,  mobilisation  and  disbursements 
under  the  MFA+  are  more  cost-effective  and  agile.  Finally,  the  loans  to  Ukraine  are 
guaranteed  by  the  headroom  of  the  EU’s  budget,  instead  of  through  provisions  and 
national  guarantees  as  it  was  the  case  for  the  two  exceptional  MFA  disbursed  in  2022. 
That  way  the  MFA+  avoids  further  pressure  on  an  EU  budget  already  strained  by 
provisioning  with  complex  arrangements  involving  a  multitude  of  ad hoc  national 
guarantees,  as  was  the  case  with  the  exceptional  MFA  support  to  Ukraine  in  2022.  A 
discussion of the budgetary treatment of the MFA+ instrument can be found in a box in 
the annual report. 

9 IMF Press Release No 23/78 of 17 March 2023: IMF Executive Board Concludes Changes to the Fund’s 
Financing  Assurances  Policy  in  the  Context  of  Fund  Upper  Credit  Tranche  Financing  Under 
Exceptionally High Uncertainty. 

10  Press  release  by  the  Ukrainian  Ministry  of  Finance,  28 September  2023:  Міністерство  Фінансів 

України (mof.gov.ua). 

12 

 
 
The  MFA+  Regulation  envisaged  the  possibility  of  a  mid-term  review  of  the  policy 
conditions included in the MoU. This is in contrast to a regular MFA operation and is in 
recognition of the extraordinary challenges of implementing an ambitious reform agenda 
during wartime. To monitor progress and evaluate implementation risks, the Commission 
was  in  regular  exchange  with  the  Ukrainian  authorities  on  this  issue  and  held  dedicated 
discussions in May, July and September assessing the continued feasibility of the agreed 
conditionality. These discussions confirmed Ukraine’s strong and continued commitment 
to reform implementation and led to an assessment (based on information at that time) that 
fulfilment  of  all  policy  conditions  in  the  MoU  appeared  overall  feasible  by  year-end 
without  any  changes  to the MoU.  While some implementation  risks  remained under the 
challenging circumstances, these appeared manageable and related mostly to uncertainties 
over the timeline of the legislative pipeline. In hindsight this assessment proved adequate, 
as Ukraine fulfilled or broadly fulfilled all policy conditions in time for the last instalment, 
disbursed in December 2023. 

The unique characteristics of the MFA+ are due to the exceptional situation of providing 
unprecedented amounts of loans to a war-torn country11. In this respect, the MFA+ does 
not  constitute  a  generally  applicable  precedent  for  future  MFA  operations.  These  will 
typically be guided by the principles in the 2013 Joint Declaration, a legally non-binding 
declaration  in  which  Parliament  and  the  Council  set  out  guiding  principles  for  MFA 
operations. In the case of the MFA+ instrument, the increased flexibilities such as in the 
design  of  the  conditionality  have  proven  highly  advantageous  without  any  apparent 
detrimental impact on the incentive structure. It also proved advantageous to: (i) base the 
release of the assistance on progress rather than completion of policy conditions before the 
end of the programme; and (ii) have flexible sequencing by means of indicative timelines. 
It  is  not  possible  to  assess  the  effect  of  forgoing  a  formal  link  to  a  disbursing  IMF 
programme, as de facto standard conditions already prevailed from March 2023 when the 
EFF  arrangement  was  put  in  place  and  subsequently  implemented  with  success. 
Nevertheless,  putting  the  EU  support  in  place  before  the  IMF  programme  reflects  the 
exceptional situation and is not to be seen as a precedent. As usual for MFA operations, an 
ex post evaluation will assess the results and efficiency of the completed support under the 
MFA+ instrument and the extent to which it contributed to the aims of the assistance. The 
evaluation  will  be  performed  not  later  than  2  years  after  the  end  of  the  assistance’s 
availability period. 

While MFA+ was thus successful as an instrument to provide predictable, continuous and 
timely financing to Ukraine in 2023, the EU’s approach to supporting Ukraine has evolved 
further and will from now on take place outside the MFA framework. To best respond to 
the  scale  and  complexity  of  the  challenges  both  for  reconstruction  and  the  reforms 
underpinning the enlargement process, Ukraine needs the EU’s sustained support. To this 
end, the  Commission  proposed  in  June  2023  to  create  a  new  instrument,  the  Ukraine 
Facility.  This  will  provide  predictable  financial  support  for  Ukraine  over  the  2024-2027 
period,  catering  both  for  short-term  state  and  recovery  needs  and  medium-term 
reconstruction  and  modernisation  of  the  country.  The  facility  is  designed  as  a  flexible 
instrument  adapted  to  the  unprecedented  challenges  of  supporting  a  country  at  war  and 
ensuring  predictability,  transparency  and  accountability  of  the  funds.    The  facility  is 
intended to provide up to EUR 50 billion from 2024 to 2027, in the form of both grants 
(up to EUR 17 billion) and loans (up to EUR 33 billion). The facility underscores the EU’s 
steadfast  commitment  to  supporting  Ukraine  in  the  face  of  Russia’s  ongoing  war  of 

11 Details on the increased flexibilities in the MFA+ design can be found in the Commission staff working 
document accompanying the Report from the Commission to the European Parliament and the Council on 
the implementation of macro-financial assistance to third countries in 2022, SWD (2023) 244 final, pp. 16-
17. 

13 

 
 
aggression and on its path towards EU membership. The proposal was ultimately adopted 
by the co-legislators on 29 February 202412 made in and April, in which EUR 6.0 billion 
in total was paid out as bridge financing.  

2.1.2 Policy conditionality 

In  light  of  the  exceptional  war  circumstances,  the  MFA+  conditionality  was  structured 
differently  from  standard  MFA  conditions.  From  a  technical  point  of  view,  a  major 
difference is that the release of the bulk of the support was made conditional on progress 
towards  implementing  the  policy  conditions,  with  an  only  indicative  timeline  for  their 
implementation in the MoU. Disbursement of the maximum amount of support under the 
instrument was then more traditionally linked to the Commission verifying fulfilment of 
all the policy conditions in the MoU. In practice, this meant that Ukraine had to fulfil or 
broadly  fulfil all structural  policy conditions  agreed in  the MoU by the time of the  last 
instalment.  And  indeed,  by  the  time  of  the  last  assessment  in  December  2023,  the 
Commission found that Ukraine had fulfilled the structural policy conditionality agreed 
in the MoU notwithstanding the exceedingly difficult wartime environment. Specifically, 
Ukraine  fulfilled  11  conditions  and  broadly  fulfilled  9  conditions.  This  assessment  of 
overall  good  progress  on  the  reform  agenda  is  also  consistent  with  the  findings  of  the 
IMF  in  its  second  review  under  the  Extended  Fund  Arrangement.  In  the  IMF  review, 
which  took  place  around  the  same  time  as  the  Commission  assessment,  the  IMF 
commended  the  Ukrainian  authorities’  programme  performance  and  noted  a  sustained 
strong commitment to reforms. 

Another important aspect in the design of policy conditionality under the MFA+ was that 
both the operation’s short timeframe  (one year)  and the war circumstances underscored 
the need to focus on a limited set of key reforms. In particular, it was imperative to be 
selective  in  terms  of  relevant,  macro-critical  conditions  which  also  appeared  feasible 
under  the  extraordinary  circumstances.  In  addition  to  addressing  Ukraine’s  immediate 
short-term funding and rehabilitation needs, the conditionality was designed with a view 
to supporting Ukraine on its path towards European integration. 
As  a  result,  policy  conditionality  in  the  MFA+  focused  on  a  limited  list  of  especially 
pressing policy objectives: economic resilience and stability, governance and rule of law, 
and energy. This conditionality should be seen against the backdrop of the ambitious and 
wide-ranging  reform  programme  Ukraine  has  embarked  upon  since  the  political 
transition in 2014. This programme has been guided by continuous implementation of the 
Association Agreement with the EU and supported by large-scale financial and technical 
assistance  provided  by  the  EU  and  other  multilateral  and  bilateral  partners.  Ukraine 
managed to advance reforms in a variety of sectors, although overall progress has been 
uneven.  The  main  obstacles  to  faster  reform  implementation  prior  to  the  war  were  the 
complex  domestic  political  environment,  the  lack  of  political  will  to  implement 
ambitious reforms in certain sectors, and opposition  from certain vested interests, some 
of which continue to exert influence on policymaking in the country. Combining strong 
ownership  of  the  reconstruction  efforts  with  a  firm  wish  to  join  the  EU  provides  an 
opportunity to tackle these challenges and enable Ukraine to ‘build back better’.   

On  economic  resilience  and  stability,  Ukraine’s  performance  has  been  commendable. 
The Ukrainian authorities have taken all the legal steps needed to phase out a number of 

12  Regulation  (EU)  2024/792  of  the  European  Parliament  and  of  the  Council  of  the  European  Union  of 

29 February 2024 establishing the Ukraine Facility. 

14 

 
 
 
tax policy-related emergency measures taken in the early phase following Russia’s full-
scale  invasion.  In  the  banking  system,  a  fresh  slate  of  independent  supervisory  board 
members  of  state-owned  banks  was  appointed  following  a  meritocratic  and  transparent 
selection  procedure.  The  banking  sector,  which  has  remained  stable  and  with  ample 
liquidity since the outbreak of the war, is nevertheless facing a deterioration of its loan 
portfolio.  Against  this  backdrop,  the  National  Bank  of  Ukraine  (NBU)  prepared  an 
assessment  of  the  commercial  banking  sector’s  asset  quality.  This  involves  two 
workstreams: (i) an independent asset quality review (AQR) of the whole banking sector, 
scrutinising the asset quality of systemically important banks in Ukraine; and (ii) an (in-
house) assessment of the resilience of the largest banks and the banking system overall. 
This second stream, complementary to the ongoing work on the AQR, was launched by 
the NBU in April 2023. Furthermore, the legal regimes governing corporate bankruptcies 
and individual insolvencies were strengthened, including rules on ensuring full discharge 
of  debt.  The  NBU  has  verified  the  ownership  structures  of  insurers  in  the  insurance 
market, thereby contributing to the sector’s transparency and integrity.  

Action  on structural reforms and good governance focused on strengthening  Ukraine’s 
business climate. In this context, the authorities successfully embarked on a broad-based 
deregulation agenda to deregulate economic activity in line with the action plan approved 
on  31 January  2023,  even  going  beyond  this  plan.  Most  notably,  more  than  a  thousand 
regulatory instruments were closely scrutinised in 2023, with work initiated and partially 
completed on abolishing 235 of them (more than one fifth) and optimising  another 537 
(more  than  half).  Public  procurement  was  developed  further,  developing  reform 
strategies  until  2025,  through:  (i)  preparation  of  a  draft  law  on  procurement  aiming  to 
achieve  EU  harmonisation  and  (ii)  further  promotion  of  transparency  through  the 
continued  functioning  of  the  ProZorro  e-procurement  system.  The  operations  of  the 
customs  administration  were  strengthened  with  improvements  in  its  IT  systems,  HR 
management  and  anti-corruption  measures.  In  its  recent  enlargement  report,  the 
Commission  commended  Ukraine  for  making  good  progress  on  the  customs  union  in 
terms  of  alignment  with  the  EU  acquis,  indicating  a  good  level  of  preparation  in  this 
area.  Still,  further  strengthening  of  institutional  capacities  is  required  in  a  multi-year 
effort to transform the State Customs Service into a fully modern, efficient, transparent 
and corruption-free institution. The process  for selecting supervisory board members in 
state-owned  enterprises  was  improved,  with  better  screening  of  candidates  for 
supervisory  board  positions  (i.e.  screening  of  applicants’  business  reputation  and 
integrity)  and  the  addition  of  specific  criteria  for  selecting  independent  members  and 
state  representatives  on  supervisory  boards.  Moreover,  Ukraine  prepared  a  draft  law  to 
align  legislation  with  the  Law  on  administrative  procedures  adopted  shortly  before  the 
beginning  of  Russia’s  war  of  aggression.  The  draft  law,  which  had  500+  pages  of  text 
and  comprised  amendments  to  a  three-digit  number  of  existing  sectoral  laws,  placed  a 
significant  strain  on  legislators’  capacity  to  process  it  in  a  timely  fashion,  but  was 
approved  at  first  reading  on  20 December  2023.  A  transition  period  was  granted  to 
financial  supervisory  agencies  to  better  account  for  the  specificities  of  their  roles  in 
prudential supervision.  

On rule of law, steps were taken to improve the independence and integrity of the judicial 
system and the capacity of institutions combating corruption. Notably, spring 2023 saw 
the  appointment  of  a  new  director  of  the  National  Anti-Corruption  Bureau  of  Ukraine 
(NABU).  In  line  with  the  parallel  assessment  in  the  Commission’s  2023  Enlargement 
Package,  Ukraine  completed  MFA+-relevant  actions  towards  re-establishing  the  High 
Council  of  Justice  (HCJ)  and  the  High  Qualification  Commission  of  Judges  (HQCJ) 
based  on  sound  frameworks  for  ethics  and  meritocratic  selections.  The  Ukrainian 
authorities  also  developed  a  comprehensive  strategic  plan  for  2023-2027  to  reform  the 
law  enforcement  system  as  part  of  the  country’s  security  and  defence  sector.  This  was 

15 

 
approved by presidential decree on 11 May 2023. A major step in strengthening the anti-
money laundering and combating the financing of terrorism (AML/CFT) framework was 
achieved by adopting the resolution ‘On approval of the Methodology for identifying the 
ultimate  beneficial  owner  by  a  legal  entity’.  This  plays  a  key  role  in  a  comprehensive 
system  verifying  information  on  ultimate  beneficial  owners.  Legislative  amendments 
were introduced: (i) regarding criminal liability for the smuggling of all goods (above a 
threshold of UAH 1.13 million for excise goods and UAH 7.57 million for other goods); 
and  (ii)  authorising  the  Bureau  of  Economic  Security  to  investigate  smuggling  crimes. 
The legislation was prepared by the Ministry of Justice with the support of international 
experts.  Furthermore,  the  Specialised  Anti-Corruption  Prosecutor’s  Office  (SAPO)  was 
strengthened  by an  improved  management  selection  process,  a new special  disciplinary 
commission  exclusively  in  charge  of  SAPO  prosecutors,  and  a  new  bi-annual 
performance  efficiency  assessment  conducted  by  an  independent  external  assessment 
commission. 

Considering the energy sector’s economic and political significance, including for energy 
security, the MFA+ featured a number of energy-related conditions. Notably, in line with 
a  corresponding  condition,  the  gas  system  was  optimised,  e.g.  by  ensuring  full 
functioning of the supervisory board of Naftogaz, the certification of Ukrtransgaz as the 
gas  storage  operator,  and  the  liquidation  of  the  firm  JSC  ‘Main  Gas  Pipelines  of 
Ukraine’. The firm was replaced by a new company ‘Operator of the Gas Transportation 
System  of  Ukraine’,  which  provides  transportation  of  natural  gas  to  consumers  in 
Ukraine and in transit to the EU. An energy strategy until 2050 for Ukraine was prepared 
and  approved  by  order  of  the  government  on  21 April  2023.  The  Ukrainian  authorities 
also  prepared  emergency  planning  on  the  reconstruction  and  physical  protection  of 
critical energy infrastructure facilities and a comprehensive list of equipment needed for 
the  energy  system  for  the  winter  season.  A  strategy  for  the  thermo-modernisation  of 
buildings by 2050 was also prepared.  

16 

 
 
 
MFA+ UKRAINE 

(Entry into force 17 Dec 2022 - end of availability period 31 Dec 2023) 

First instalment 

Second instalment 

Third instalment 

Fourth instalment 

Fifth instalment 

Sixth instalment 

EUR 3 000 million   EUR 1 500 million  

EUR 4 500 million  

EUR 4 500 million  

EUR 3 000 million  

EUR 1 500 million  

Disbursed 
(17 January 2023) 

Disbursed (21 February 
2023) 

Disbursed (25 April, 
23 May, 22 June 2023 
each EUR 1.5 billion) 

Disbursed (25 July, 
22 August, 
22 September 2023 
each EUR 1.5 
billion) 

Disbursed (23 
October, 
22 November 2023 
each EUR 1.5 
billion) 

Disbursed (21 December 
2023) 

Satisfactory progress towards implementation 

Satisfactory 
implementation 

Satisfactory progress on 
actions 1 and 2 

Satisfactory progress 
on actions 1 and 2 

Satisfactory progress 
on actions 1, 2, 3 and 
4 

Action 1: 
Implementation of 
the roadmap for 
phasing out of the 

Action 2: Measures to 
support the stability of 
the banking system: i. 
implementation of the 

Decision (EU) 
2022/2463 

Loan amount 
(EUR million) 

Implementation 

Role of policy 
conditions for 
release of the 
instalment 

Economic 
resilience and 
stability13 

13 For each instalment, the conditions are presented for which the Commission considered either satisfactory progress towards implementation or completed satisfactory implementation 

as a basis for releasing the respective instalment. 

17 

 
 
 
 
temporary 
emergency measures 
adopted after the 
start of the war in the 
area of tax policy, in 
a well-sequenced 
manner, duly 
accounting for 
security and its 
impact on the 
economic situation: 
fulfilled 

Satisfactory progress 
on actions 2, 3 and 4 

agreed methodology on 
state-owned bank 
supervisory board 
successions; ii. preparing 
for launching of 
commercial banks’ asset 
assessment: fulfilled 

Action 3: Improving the 
regimes of bankruptcy of 
legal entities (corporate 
bankruptcy) and 
insolvency of individuals 
by preparing legislation 
allowing individuals a 
full discharge of debt in 
line with the main 
principles of Directive 
(EU) 2019/1023 on 
preventive restructuring 
frameworks, and by 
adopting a road map for 
capacity building 
activities to support the 
implementation of the 
bankruptcy code: 
broadly fulfilled 

Action 4: Measure to 
strengthen the insurance 

18 

 
system: verification by 
the NBU of the 
ownership structures of 
insurers and of their 
compliance with 
legislative prudential 
requirements in order to 
build a transparent and 
competitive insurance 
market: fulfilled  

Action 5: Initiate the 
implementation of the 
Action Plan to deregulate 
economic activity and 
improve the business 
climate, including 
deregulation of the 
licensing and permit 
system (end-February), 
improving the 
e construction portal, 
simplification of   
temporary constructions 
for business activities, 
abolition of outdated 
provisions, and 
digitalisation of issuing 
of licences: broadly 

Satisfactory progress on 
action 5 

Satisfactory progress 
on action 5 

Satisfactory progress 
on action 5 

Satisfactory progress 
on actions 5, 6 and 9 

Structural 
reforms and 
good 
governance 

19 

 
 
fulfilled  

Action 6: Further 
developing the system of 
public procurement with 
a view to its alignment 
with the EU acquis to 
ensure transparent and 
competitive procurement, 
including for the 
reconstruction of Ukraine 
in the post-war period 
and, regarding medical 
procurement, preserving 
the SOE Medical 
Procurement of Ukraine 
(MPU) as the sole 
national procurer of 
medical equipment, 
medicines and vaccines 
at central level: broadly 
fulfilled  

Action 7: Advancing the 
customs administration 
reform, including 
improvement in IT 
systems, HR 
management and anti-
corruption measures: 

20 

 
broadly fulfilled  

Action 8: Strengthening 
the selection process of 
independent members of 
the supervisory boards 
and management boards 
for the largest of state-
owned enterprises.: 
fulfilled  

Action 9: Aligning the 
legislation with the 
requirements of the Law 
of Ukraine “On 
Administrative 
Procedure”.  broadly 
fulfilled 

Action 12: Development 
and adoption of an 
overarching strategic 
plan for the reform of the 
entire law enforcement 
sector as part of 
Ukraine’s security 
environment: fulfilled 

Action 13: Improving the 
selection of judges: (a) 

Action 10: Finalising the 
selection and 
appointment of the new 
Head of NABU: fulfilled 

Rule of law 

Satisfactory progress 
on action 12, 13 and 
14 

Action 11: Re-
establish the High 
Council of Justice 
and the High 
Qualification 
Commission of 
Judges (HQCJ) based 
on the current work 
of the Ethics Council 
and the Selection 
Commission: 

21 

 
 
 
fulfilled 

Satisfactory progress 
on action 13 

22 

making efforts to 
streamline the stages of 
selection and rearrange 
their sequencing; (b) 
review of the length of 
the mandatory judicial 
training period; (c) 
approval and publication 
by the renewed HQCJ of 
regulations on the 
selection of judges, 
including on clear 
assessment criteria and 
scoring methodology; 
and launching the 
procedure of selection of 
judges based on the 
improved framework: 
broadly fulfilled 

Action 14: Improving the 
AML/CFT regulatory 
framework by 
developing relevant 
secondary legislation and 
making progress in 
developing institutional 
capacities related to 
beneficial ownership: 

 
fulfilled 

Action 15: Adopting and 
starting to implement 
relevant legislation 
aimed at criminalising 
large-scale smuggling of 
all goods, foreseeing 
effective prison 
sentences for each 
damage to the state 
budget above a defined 
threshold.  broadly 
fulfilled 

Action 16: Further 
strengthening the 
capacity of SAPO, inter 
alia through introducing 
performance evaluation, 
improving the selection 
of its management and 
other measures targeted 
to ensure its 
accountability and 
independence.  fulfilled 

Energy 

Satisfactory progress on 
action 18 

Satisfactory progress 
on action 18 

Satisfactory progress 
on actions 17, 18 and 

Action 18: Improve 
the functioning of the 
gas system through i) 

Action 17: Strengthen the 
legal and administrative 
framework to ensure the 

23 

 
 
selection of the 
supervisory board of 
Naftogaz; ii) taking 
measures necessary 
for the certification 
of the gas storage 
operator in 
compliance with the 
Regulation (EU) No. 
715/2009; iii) 
launching corporate 
restructuring of the 
Gas Transmission 
System Operator in 
line with the agreed 
target model: 
fulfilled  

Satisfactory progress 
on actions 17 and 19 

use of high energy 
performance standards, 
aiming for the 
application of 
international best 
practice as regards 
energy efficiency and 
circular economy, for 
newly built and 
rehabilitated buildings: 
broadly fulfilled 

Action 19: Preparation of 
the Action Plan for the 
restoration of the energy 
infrastructure of Ukraine 
destroyed as a result of 
the military aggression of 
the Russian Federation, 
anchored to the 
objectives of green 
transition and build-back 
better, where possible: 
fulfilled 

Action 20: Make 
progress in 
implementation of a road 
map for electricity 
market integration after 

19 

24 

 
Remarks 

This operation was not made conditional on a disbursing IMF programme. At the same time, the IMF Executive Board approved on 19 December 
2022 a four-month Program Monitoring with Board Involvement (PMB), which is a non-disbursing arrangement. This paved the way to a fully-
fledged Extended Fund Facility (EFF) arrangement, which the IMF Executive Board approved on 31 March 2023. Over the course of 2023, two IMF 
programme review were successfully completed. 

All instalments were conditional on satisfactory implementation of the reporting system on the use of funds as agreed in the MoU. 

synchronisation: fulfilled 

25 

 
3.  JORDAN  

Economic  growth  was  resilient  in  2023,  estimated  at  2.6%,  and  is  projected  to  slightly 
increase  in  2024/2025,  although  significant  downside  risks  have  emerged.  The 
escalations in the Middle East are expected to primarily impact the tourism sector, which 
was an important driver of growth in 2023. It remains to be seen if the sizeable share of 
potentially more resilient tourism involving Jordanian expats and tourists from the region 
could  be  a  mitigating  factor.  Inflation  slowed  in  2023  (average  inflation  2.0%)  due  to 
lower  global  energy  prices  and  the  central  bank’s  monetary  tightening.  Very  high 
unemployment  persists  (21.4%  in  Q4),  in  particular  among  women  and  young  people. 
The budget deficit remained stable in 2023 (6%, Jan-Nov); consolidation efforts did not 
lead  to  a  decrease  in  the  very  high  level  of  public  debt  (90%  of  GDP).  The  MFA  to 
Jordan was successfully concluded in 2023, with the disbursement of the final instalment 
in  May  2023,  following  overall  good  progress  on  the  agreed  policy  reforms.  Jordan 
requested  an  additional  MFA  operation,  and  in  April  the  Commission  put  forward  a 
proposal  to  support  the  country  in  an  increasingly  challenging  regional  situation.  The 
proposal  includes  a  broad-based  policy  reform  agenda  to  strengthen  the  country’s 
resilience.   

3.1 Implementation of macro-financial assistance 

3.1.1 Recent macro-financial assistance operations 

Between  2014  and  2023,  three  consecutive  MFA  operations  provided  a  total  of 
EUR 1 080  million  in  loans  to  Jordan.  The  EU  has  maintained  its  support  to  Jordan 
throughout the difficult years when Jordan faced multiple challenges related to the lasting 
Syrian  refugee  crisis  starting  in  2011  and  the  COVID-19  pandemic  in  2020/2021, 
followed by commodity price shocks due to Russia’s war on Ukraine in 2022. Following 
Jordan’s request for further MFA on 11 July 2019, on 6 September 2019 the Commission 
adopted  a  proposal  for  a  new,  follow-up  MFA  to  Jordan  for  an  amount  of  EUR 500 
million in loans (Decision (EU) 2020/33). The proposal was adopted by co-legislators on 
15 January 2020 and the assistance was disbursed in three instalments over 2020-2023.  

Later, when the COVID-19 pandemic hit the already struggling Jordanian economy, the 
authorities requested further MFA on 21 April 2020. In turn, as part of the COVID-19-
MFA package adopted on 25 May 2020, the European Parliament and the Council agreed 
on a top-up MFA programme of EUR 200 million to Jordan (Decision (EU) 2020/701), 
in addition to the EUR 500 million made available under MFA-III. 

The (combined) MFA of 2020 came on top of the EUR 380 million of MFA provided to 
Jordan since 2014, under Decisions (EU) 2013/1351 and 2016/2371. The MoU between 
the  EU  and  Jordan,  which  underpins  the  recent  MFA  operation  and  its  top-up,  was 
endorsed  by  the  Member  State  Committee  on  Macro-Financial  Assistance  on  27 July 
2020. It then entered into force on 2 October 2020.  

The  first  instalment  (EUR 250  million  in  loans)  was  subject  to  the  general  political 
pre-condition  that the MFA  and the  IMF programme  had to  remain on track.  This  first 
instalment was disbursed on 25 November 2020. The second and third instalments were 
subject  to  implementation  of  the  specific  policy  conditionality  agreed  between  Jordan 
and  the  EU  in  the  MoU.  The  programme’s  policy  conditionality  focused  primarily  on 

26 

 
 
improving public finance management, fighting corruption, and on reforms in the utilities 
sector,  social  and  labour  market  policy,  and  governance.  Following  an  overall  positive 
assessment of corresponding progress, the second instalment (EUR 250 million in loans) 
was disbursed on 20 July 2021. Following consultation of the Member State Committee 
on Macro-Financial Assistance, a waiver was granted for one condition (relating to steps 
towards  implementing  an  electronic  invoicing  system  to  fight  tax  evasion);  the 
expectation was that this condition would be fulfilled once the reforms required for the 
third instalment had been implemented (this indeed proved to be the case). The third and 
final  instalment  (EUR 200  million  in  loans)  was  disbursed  on  3 May  2023,  again 
following  an  overall  positive  assessment  of  reform  progress.  Again,  following 
consultation  of  the  Member  State  Committee  for  Macro-Financial  Assistance,  a  waiver 
was granted for one condition (relating to amendments to the Illicit Enrichment Law) as 
only the fourth sub-action had been fulfilled by the end of the MFA availability period. 
Nevertheless,  given  the  overall  progress  made  and  ongoing  process,  the  Commission 
considered that it was justified to grant a waiver for this condition.  

These MFA operations are provided in conjunction with the resources from international 
financial  institutions  and  bilateral  donors,  including  the  IMF.  On  25 March  2020,  the 
IMF  approved  a  four-year  Extended  Fund  Facility  (EFF)  programme  with  Jordan  of 
initially roughly USD 1.3 bn (270% of quota). This was increased twice in 2021/2022 to 
about  USD  1.49 bn  (334%  of  Jordan’s  quota)  with  a  view  to  stepping  up  support  to 
Jordan  to  cope  with  the  impact  of  the  pandemic  on  the  population  while  hosting  1.3 
million  Syrian  refugees.  The  IMF  approved  the  sixth  review  of  the  EFF  in  June  2023, 
making  about  USD  32  million 
total  IMF 
disbursements  to  Jordan  for  the  period  2020  to  2023  to  about  USD  1.7 bn.  The  figure 
includes  around  USD  390  million  in  emergency  assistance  to  Jordan  under  the  Rapid 
Financing  Instrument  in  May  2020  to  help  the  country  deal  with  the  impact  of  the 
pandemic.  By  late  2023,  with  only  a  small  amount  left  in  the  2020  EFF  following 
significant  frontloading  of  disbursements,  the  IMF  and  Jordan  agreed  to  terminate  the 
programme  early  and  replace  it  with  a  new  EFF.  In  January  2024,  the  IMF  Executive 
Board approved a new arrangement under the Extended Fund Facility (EFF) for Jordan 
for  USD 1.2 billion  covering  the  period  2024-2027.  While  Jordan’s  public  debt  (net  of 
social security corporation holdings of government debt) remained high at 90.6% of GDP 
in 2023, it was assessed as sustainable by the IMF in January 2024. 

immediately  available.  This  brings 

On account of the many different challenges faced by  the country, in October 2023 the 
Jordanian authorities sent  a request  for  a follow-up MFA, citing  the  challenging global 
economic prospects, restrictive credit conditions due to monetary tightening, high energy 
costs, inflationary pressures and the burden of the Syrian refugee crisis. The Commission 
presented a proposal for a new regular MFA operation of up to EUR 500 million in April 
to  strengthen  the  country’s  resilience  and  growth  capacity  and  underpin  its  role  as  a 
stabilising factor in an increasingly unstable region14. 

3.1.2  Policy conditionality   

The policy actions included in the memorandum of understanding on the MFA operation 
of  2020  (including  the  top-up)  were  in  line  with  Jordan’s  reform  commitments  in  the 
context of the EU-Jordan Partnership Priorities and other EU support instruments, as well 
as  the  adjustment  programmes  agreed  with  the  IMF  and  the  World  Bank.  Taking 
Jordan’s  five-year  reform  and  growth  matrix  as  a  guideline  for  designing  the  policy 

14 COM(2024) 159 final. 

27 

 
 
programme  in  the  MoU  ensured  the  Jordanian  authorities’  ownership  of  the  reform 
process and avoided overburdening their (limited) administrative capacities.  

The  policy  conditionality  of  the  MFA  covered  the  following  thematic  areas:  public 
finance  management  (PFM);  reforms  in  the  utilities  sector;  social  and  labour  market 
policy;  and  governance.  The  conditions  aimed  to  address  key  weaknesses  of  the 
Jordanian  economy  and  mitigate  the  economic  and  social  impact  stemming  from  the 
regional conflicts and the presence of a large number of Syrian refugees in the country. 
The conditionality was also chosen to build on the reform progress of the two previous 
MFA operations. To secure disbursement of the third and final instalment (disbursed in 
2023), 14 conditions needed to be fulfilled. The Jordanian authorities (broadly) fulfilled 
all but one condition, for which a waiver was granted, as mentioned above. 

Jordan  made  significant  progress  on  public  finance  management,  in  particular  by 
continuing  work  on  the  electronic  invoicing  system,  which  aims  to  improve  tax 
compliance. The e-invoicing system was developed by a contractor in 2022 and launched 
in  January  2023.  Another  achievement  was  the  launch  of  the  National  Registry  of 
Investment  Projects  (NRIP),  which  became  operational  in  June  2022,  after  handover 
from the developer. The NRIP was introduced to increase the transparency and efficiency 
of public investments.  

Progress  was  also  recorded  on  utilities  reforms.  To  improve  transparency  and  promote 
functional  unbundling  of  the  government-owned  National  Electric  Power  Company 
(NEPCO), and to support its financial sustainability, in 2022 NEPCO started publishing 
annual  financial  statements  for  the  accounting  year  2021,  based  on  separate  and 
independent accounting for each area of operations. Jordan also advanced on identifying 
water  leakages  and  reducing  losses  from  non-revenue  water:  in  close  cooperation  with 
international aid and donor organisations, it launched projects to increase accounting for 
water usage. 

Social and labour market policies advanced under the MFA with the installation of small 
solar  energy  stations  in  at  least  4 000  economically  vulnerable  households  and  the 
extension  of  the  social  assistance  programme.  To  develop  young  people’s  digital  skills 
and  improve  their  employment  prospects,  the  government  adopted  a  national  plan  on 
digital skills training.  

The authorities advanced some governance reforms in line with the MFA conditionality, 
but  important  challenges  remain  to  reduce  corruption.  Amendments  to  the  Investment 
Law were adopted in 2022 to increase transparency for tax incentives to businesses. The 
amendments  also  simplified  administrative  and  governance  structures,  in  particular  the 
duties  and  authorities  of  the  Ministry  of  Finance.  The  authorities  did  not  fulfil  the 
condition on the Illicit Enrichment Law. While amendments to the law were adopted in 
2021, these did not include all points under the MFA condition. As a result, a waiver was 
granted in March 2023, before the end of the availability period.  

Besides the MFA conditionality, the government launched important reform projects. In 
June  2022,  the  government  laid  out  its  Economic  Modernization  Vision.  The  plan 
envisages  the  creation  of  one  million  new  jobs,  raising  the  standard  of  living  and 
boosting economic growth over the next 10 years.  

Jordan’s  reform  agenda  is  underpinned  by  the  government’s  economic  priorities 
programme  (GEPP) 2021-2023, the comprehensive  five-year  reform  matrix  2018-2022, 
which  was  extended  to  2025,  and  the  government’s  indicative  executive  programme 
(GIEP).  The  economic  priorities  programme  addresses  key  challenges  in  the  labour 

28 

 
market and private sector, with 53 targets mainly derived from the reform matrix and the 
indicative executive programme.  

MFA JORDAN III AND COVID TOP-UP 

(ENTRY INTO FORCE:  3 OCTOBER 2020 - END OF AVAILABILITY PERIOD 2 APRIL 2023; 
END OF AVAILABILITY PERIOD OF COVID TOP-UP: 2 OCTOBER 2021) 

Decision (EU) 
2020/33 

Decision (EU) 
2020/701 

Amount (EUR 
million) 

First instalment 

Second instalment 

Third instalment 

EUR 250 million 
(loans)  

EUR 250 million 
(loans)  

EUR 100 million under 
Decision (EU) 2020/33; 
EUR 150 million under 
Decision (EU) 
2020/701  

EUR 200 million under 
Decision (EU) 2020/33; 
EUR 50 million under 
Decision (EU) 
2020/701 

EUR 200 million 
(loans) 

 EUR 200 million 
under Decision (EU) 
2020/33  

Implementation 

Disbursed on 
25 November 2020 

Disbursed on 20 July 
2021 

Disbursed on 3 May 
2023 

Policy conditions  Not applicable 

Total n.: 8 

Total n.: 14 

Public finance 
management   

Reform on the draft 
framework law on 
public finance 
management: fulfilled 

Reform on roll-out of 
electronic invoicing 
system: broadly 
fulfilled 

Reform on the 
development of the 
electronic invoicing 
system: waived15 

Reform on secondary 
legislation to the 
public-private 
partnerships (PPP) 
legislation: fulfilled 

Reform on the 
electronic tendering 

Reform on 
establishing a National 
Registry of Investment 
Projects: fulfilled 

Reform on dedicated 
PPP Unit: fulfilled 

Reform on expanding 
the use of the 
electronic tendering 
system: fulfilled 

15 A waiver was granted for Action 2 in 2021. This was because the project had run into initial difficulties, 
as  tenders  could  not  be  awarded  due  to  insufficient  technical  capacities  on  the  part  of  the  domestic 
bidders interested in developing the system. Action 2 would implicitly be later fulfilled by Action 9, 
which aims at the full roll-out of the electronic invoicing system. 

29 

 
 
 
 
system: fulfilled 

Utilities 

Reform on water smart 
meters in Amman and 
Irbid: fulfilled 

Social and labour 
market policy 

Reform on e-licensing 
40 nurseries: fulfilled  

Reform on the 
submission of annual 
procurement plans: 
broadly fulfilled 

Reform on extending 
smart water meters to 
other cities/areas: 
broadly fulfilled  

Reform on the 
publication of 
NEPCO’s annual 
financial statements: 
fulfilled 

Reform on installing 
small solar energy 
stations: fulfilled 

Reform on expanding 
the Takaful social 
assistance programme: 
fulfilled 

Reform on adopting a 
national plan for 
digital skills training: 
fulfilled 

Reform on developing 
an electronic 
inspection 
management system 
for labour inspections: 
fulfilled 

Governance 

Reform on expanding 
the operation of the 
single window for 
customs clearance: 
fulfilled 

Reform on signing the 

Reform on enacting 
amendments to the 
Illicit Enrichment 
Law: waived16 

Reform on 
amendments to the 

16 The adopted amendments to the Illicit Enrichment Law of 2021 do not sufficiently address the measures 
included under the MFA condition; only one out of four sub-actions was completed by the end of the 
MFA  availability  period.  Nevertheless,  given  ongoing  process  and  the  progress  made  on  the  Illicit 
Enrichment  Law  in  comparison  to  before  the  amendments,  the  Commission  considered  that  it  was 
justified to grant a waiver for this condition. 

30 

 
 
 
 
 
 
 
Convention on Mutual 
Administrative 
Assistance in Tax 
Matters: fulfilled 

Investment Law: 
fulfilled 

Reform on ratifying 
the Convention on 
Mutual Administrative 
Assistance in Tax 
Matters: fulfilled 

Remarks 

The political pre-condition for granting the EU’s macro-financial assistance 
was respected; the disbursing IMF programme showed a positive track 
record throughout 

4.  NORTH MACEDONIA 

The post-pandemic economic recovery in North Macedonia slowed in 2023, with annual 
GDP  growth  dropping  to  1%.  Domestic  demand,  while  remaining  weak  overall,  was 
driven  by  private  consumption,  bolstered  by  strong  growth  in  wages,  with  real  wages 
rebounding  again  since  July  2023  in  line  with  gradually  abating  inflation  and  rising 
remittances. Gross capital formation dropped starkly, mainly as a result of a draw-down 
of  inventories,  which had posted a strong built-up in  the preceding  year, as businesses 
were  faced  with  uncertainty  about  the  future  course  of  commodity  prices.  Public 
consumption also declined as fiscal support measures were phased out and operational 
costs  cut  in  the  government’s  endeavour  to  bolster  fiscal  consolidation.  Net  exports, 
driven  by  a  steep  decline  in  commodity  imports,  and  in  spite  of  a  simultaneous  energy 
crisis-related  strong  drop  in  metals  exports,  made  a  positive  contribution  to  GDP 
growth.  In  2024,  GDP  growth  is  expected  to  accelerate  mildly,  amidst  some  downside 
geopolitical and domestic risks on the back of large public investments and a pick-up in 
exports. 

External  vulnerabilities  decreased  in  2023.  The  current  account  balance,  whose  deficit 
surged to 6.1% of GDP in 2022 due to the energy crisis, improved gradually throughout 
2023, with its 4-quarter moving average shifting from a deficit of 2.4% of GDP in Q1 to 
a surplus of 0.7% in Q4. As energy prices have come down substantially from their peak 
and  domestic  production  of  electricity  increased,  the  merchandise  trade  deficit  has 
narrowed significantly, by 7.6 points year on year to 18.9% of GDP.  

At  4.9%  of  estimated  GDP,  the  2023  budget  deficit  was  slightly  higher  than  the 
government’s target (4.8%) and above the 2022 outcome (4.4%). This came mainly as a 
result of weaker than projected GDP growth. A budget reallocation became necessary in 
September, mainly to accommodate higher public-sector wages and pensions and higher 
social transfers, while leaving the deficit target unchanged. Revenues increased by 14% 
year  on  year,  boosted  by  a  one-off  ‘solidarity  tax’  on  excess  corporate  profits.  The 
government also gradually raised VAT on electricity for households back to the standard 
rate of 18% by 1 July. Current expenditure was driven by high transfer payments, yet at 
the  same  time  the  government  also  reduced  untargeted  crisis  support  measures.  There 
was  record  high  execution  of  capital  expenditure  in  2023:  implemented  capital 
expenditure in 2023 was higher by 52% compared to 2022 and amounted to 97% of the 
government’s target, well above the average of the previous 5 years (83%).  

Public debt,  which includes the debt  of  public enterprises, stood at  62.2% (+2.5 points 
year on year) of estimated GDP at the end of 2023, while general government debt stood 
at  53.3%  (+2.3 points).  In  March  2023,  the  government  issued  a  Eurobond  for  an 

31 

 
amount  of  EUR  500  million,  mainly  to  refinance  the  July  repayment  of  the  2016 
Eurobond. In December, the government benefited from a EUR 93 million disbursement 
from  a  World  Bank  development  policy  loan  (DPL),  as  well  as  a  EUR 165  million 
disbursement  as  part  of  the  second  tranche  under  the  ongoing  IMF  precautionary  and 
liquidity line. 

4.1 Implementation of macro-financial assistance 

4.1.1 Recent macro-financial assistance operations 

In  2020-2021,  North  Macedonia  benefited  from  MFA  worth  EUR 160  million  in  loans 
under the EU’s EUR 3 billion package to  10 enlargement and neighbourhood countries 
under  the  COVID-19  MFA.  Following  an  official  request  from  North  Macedonia17  on 
15 April 2020, the Commission adopted a proposal for a decision providing the country 
with macro-financial assistance of up to EUR 160 million. The decision was adopted by 
the  European  Parliament  and  the  Council  on  25 May  202018.  In  accordance  with  the 
MoU,  the  assistance  was  provided  in  two  equal  instalments  of  EUR 80  million  each. 
These were dependent on the fulfilment of nine policy measures laid down in the MoU 
aimed at addressing key weaknesses of the economy of North Macedonia and mitigating 
the  economic  and  social  impact  of  the  COVID-19  pandemic.  The  policy  measures 
focused on the following thematic areas: public finance management, financial stability, 
good  governance  and  the  fight  against  corruption,  the  business  environment  and  social 
policy.  

Against  the  backdrop  of  tighter  global  financial  conditions,  higher  energy  prices  and 
higher-than-expected  losses  by  the  domestic,  state-owned  electricity  producer,  the 
government  of  North  Macedonia  asked  for  a  new  MFA  on  19 April  2022.  The 
Commission  put  this  initial  request  on  hold,  mainly  because  the  economy  was  still 
relatively resilient and because there  seemed to  be some other options  to  meet  external 
financing  needs  in  2022.  The  authorities  renewed  their  request  on  18 October  2022.  In 
April  2022,  the  government  had  already  secured  Staff  Approval  from  the  International 
Monetary  Fund  (IMF)  for  a  24-month  precautionary  and  liquidity  line  (PLL)  of  up  to 
EUR 530  million,  which  was  officially  approved  by  the  IMF  Executive  Board  on 
22 November  2022.  In  response  to  North  Macedonia’s  high  gross  external  financing 
needs  in  2023  and  uncertainties  as  to  the  availability  and  costs  of  external  market 
financing,  on  3  February  2023  the  Commission  adopted  a  proposal  for  a  decision 
providing  MFA  to  North  Macedonia  of  up  to  EUR 100  million,  in  the  form  of  a  loan, 
based on Article 212 TFEU. The decision was adopted by Parliament on 13 June and by 
the Council on 10 July 202319. Following the subsequent discussion and agreement with 
North Macedonia on the policy reforms set to underpin the new MFA operation, vetted 

17 Letter of 15 April 2020 from Finance Minister Nina Angelovska to Commissioner Mr. Paolo Gentiloni. 

18 Decision (EU) 2020/701 of the European Parliament and of the Council of 25 May 2020 on providing 
macro-financial assistance to enlargement and neighbourhood partners in the context of the COVID-19 
pandemic. OJ L167, 27.5.2020, p.31. 

19  Decision  (EU)  2023/1461  of  the  European  Parliament  and  of  the  Council  of  12 July  2023  providing 

macro-financial assistance to the Republic of North Macedonia, OJ L 180, 17.7.2023, p. 1. 

32 

 
 
 
by  the  Member  State  Committee  in  October  2023,  the  MoU  entered  into  force  on 
2 February  2024,  when  the  North  Macedonian  authorities  fulfilled  all  internal  legal 
requirements. 

The  operation  will  help  address  the  economy’s  short-term  balance-of-payments  needs 
and  fiscal  vulnerabilities  and  demonstrate  the  EU’s  support  for  the  country  when 
addressing this challenging situation. Its design and implementation take account of the 
policy guidance agreed in the Joint Conclusions of the Economic and Financial Dialogue 
between  the  EU  and  the  Western  Balkans  and  Türkiye  of  24 May  202220  and  of  the 
programme North Macedonia has agreed with the IMF21. 

The disbursement is expected to take place in two instalments, the first of which is likely 
to  take  place  on  8  May.  The  release  of  each  instalment  is  conditional  on:  (i)  North 
Macedonia  making  progress  on  implementing  a  number  of  policy  measures  agreed 
between  the  Commission  and  the  authorities  and  listed  in  a  memorandum  of 
understanding;  and  (ii)  a  satisfactory  track  record  implementing  the  IMF  programme. 
The  MoU  containing  20  policy  conditions  focuses  on  policy  reforms  addressing  fiscal 
governance, 
investment,  public-private 
the  management  of  public 
partnerships,  the  business  environment,  education  and  the  labour  market,  renewable 
energy sources and energy efficiency, judiciary reform, and the fight against corruption. 
The  policy  measures  aim  to  address  some  of  the  most  important  weaknesses  of  the 
economy of North Macedonia and its economic governance system.  

tax  policy, 

On  22 February  2024,  the  government  sent  a  revised  statement  of  compliance  with  the 
policy conditions required for disbursement of the first instalment of the MFA. This was 
assessed  by  the  Commission  and  resulted  in  a  disbursement  on  8  May).  Meanwhile,  in 
January 2024 the IMF completed its first review under the PLL Arrangement and granted 
the government access to a second tranche of the PLL. The government plans to exit the 
PLL in November 2024 at the date of expiry of the arrangement. 

4.1.2  Policy conditionality 

The policy conditions laid down in the MoU are in line with the policy guidance jointly 
adopted  at  the  Economic  and  Financial  Dialogue  of  May  2023  and  with  commitments 
undertaken  under  the  2022  IMF  PLL.  They  build  on  the  previous  MFA  and  cover  the 
following thematic areas: public finance, the business environment, education and labour 
markets, energy, the judiciary, good governance and the fight against corruption.  

In line with the measures agreed under the MFA ahead of the first disbursement, a new 
Fiscal Council as provided for under the 2022 Organic Budget Law has been established. 
The  North  Macedonian  Parliament  appointed  the  Council’s  six  members,  while  the 
Rulebook and Statutes of the Council have also been adopted. The government set up a 
new Department for Public Investment Management in the Ministry of Finance to ensure 
centralised  oversight  of  public-sector  investment,  including  public  enterprises,  with  the 
aim  of  improving  the  management  of  public  investment.  Parliament  also  adopted 
revenue-enhancing  amendments  to  the  laws  on  corporate  taxation  and  on  VAT,  and 

20 https://www.consilium.europa.eu/media/56385/st09459-en22.pdf. 

21https://www.imf.org/en/Publications/CR/Issues/2022/11/29/Republic-of-North-Macedonia-Request-for-

an-Arrangement-under-the-Precautionary-and-525935. 

. 

33 

 
 
adopted the new one-off solidarity tax22. On structural reforms, the government adopted a 
new strategy to reduce the size of the informal economy, as well as a smart specialisation 
strategy  intended  to  strengthen  research  and  innovation.  In  October  2023,  the  new 
Energy  Efficiency  Fund  was  given  a  legal  basis;  it  now  needs  to  be  made  operational. 
The  government  also  adopted  three  key  laws  on  education,  and  in  December  2023 
adopted a new judicial reform strategy. 

Decision (EU) 
2020/701 

First instalment 

Second instalment 

Amount (EUR million)  Up to EUR 50 million 

Up to EUR 50 million 

Implementation 

8 May 2024 

Expected in Q4-24 

Policy conditions 

First instalment  

Second instalment 

Make  the  Fiscal  Council  fully 
operational  by  appointing  all 
its  members  and  by  adopting 
its  statutes  and  rulebook,  fully 
taking 
the 
account 
Commission’s 
European 
comments. Recruit at least 50% 
of 
the  Council’s  secretariat 
staff: fulfilled 

into 

the 

Strengthen 
newly 
established  Public  Investment 
Department  in  the  Ministry  of 
Finance  by  recruiting  at  least 
50%  of  the  staff  (7  staff): 
fulfilled  

Parliament adopts the solidarity 
tax law as well as amendments 
to  the  VAT  law  and  the  profit 
tax law with a view to reducing 
tax exemptions: fulfilled 
1. 
The  government  adopts 
a  new  strategy  for  on 
the 
formalisation  of  the  informal 
economy  2023-2027,  along 
with  an  action  plan  for  2023-
2025  

Public finance 

Business environment 

9. The Fiscal Council prepares 
an independent analysis of the 
medium-term  fiscal  strategy 
2025-2029 

in 

line  with 

10.  The  government  adopts 
guidelines  for  the  appraisal  of 
projects, 
the 
recommendations  of  the  IMF 
and  the  World  Bank,  on  the 
proposal  of  the  Ministry  of 
Finance 

11. Parliament adopts the draft 
laws on public-private 
partnerships (PPP) and on 
concessions 

12. The government adopts the 
(2024-
new  SME  strategy 
Small 
including 
2030), 
(SBA) 
Act 
Business 
recommendations  

22 The solidarity tax is a one-off tax levied on excess corporate profits in 2022. It was not included in the 
2023 budget. Revenue from this tax amounted to an additional 0.5% of GDP (EUR 76 million) in 2023. 

34 

 
 
 
 
 
 
 
 
The  government  adopts 
the 
smart  specialisation  strategy 
and  a 
related  action  plan: 
fulfilled 
the 
The  government  adopts 
new 
vocational 
on 
education and training, the law 
on secondary education and the 
law  on  adult  education,  and 
submits 
the 
them 
Parliament: fulfilled 

law 

to 

Education and the 
labour market 

13. The government adopts the 
secondary 
following 
legislation 
the 
energy efficiency law: 

relating 

to 

Energy 

Parliament adopts amendments 
to the law on the Development 
Bank so as establish the Energy 
Efficiency  Fund  aimed  at 
the  public 
in 
investments 
sector: fulfilled 

a)  a decree that regulates 

in detail energy 
performance contracts 
(Article 27(7) of the 
National Energy 
Efficiency Law) 

b)  a rulebook regulating 

the content and form of 
the energy efficiency 
programmes to be 
adopted by the units of 
self-government  

14. The Development Bank of 
North  Macedonia  adopts  the 
the 
rules  of  procedure  of 
Energy  Efficiency  Fund  and 
starts  developing  a  project 
pipeline 

Parliament 

adopts 
15. 
amendments 
the  Energy 
to 
Efficiency  Law  in  line  with 
the 
Efficiency 
Directive  (2018/2002)  and  the 
Energy Community opinion 

Energy 

16. 
Complete  unbundling 
and  certification  of  the  gas 
transmission  system  operator 

35 

 
 
 
 
 
 
 
 
 
 
NOMAGAS,  as  required  by 
the third energy package 

17. Parliament adopts a newly 
revised  legal  framework  for 
the  Judicial  Council,  in  line 
with  European  standards  and 
Venice 
Commission 
recommendations,  to  further 
enhance  the  transparency  and 
independence  of  the  Council, 
including its members 

for 

in  a 

SCPC’s 

the  continued 
18.  Ensure 
the  State 
independence  of 
the 
Commission 
Prevention 
of  Corruption 
(SCPC),  including  by  electing 
the  new  Commission  and  its 
timely  and 
President 
transparent manner, on a merit 
basis  and  in  accordance  with 
the Law. In line with GRECO 
recommendations,  strengthen 
oversight 
the 
for 
competences 
in-depth 
statements  of 
scrutiny  of 
interest and asset declarations, 
notably  by:  (i)  making  fully 
operational 
already 
on 
developed 
collecting  data  on  property 
status;  (ii)  increasing  by  at 
the  number  of 
least  5 
specialised 
and 
strengthening  capacities  of 
existing  staff  in  line  with  the 
SCPC’s competences  

the 
software 

staff 

and 

resources  of 

19.  Strengthen  human  and 
financial 
the 
Office  of  the  Basic  Public 
for  Organised 
Prosecutor 
Corruption 
Crime 
by 
(OCCPPO), 
recruiting  at  least  5  public 
prosecutors  and  10  financial 
experts,  creating  specialised 
the 
units 
number 
proactive 
investigations 

increasing 
of 

notably 

and 

Judiciary, good 
governance, and the 
fight against 
corruption 

taking 

the 
The  government  adopts 
new strategy on judicial reform 
(2023-2027), 
into 
account the lessons drawn from 
implementing  the  2017-2022 
strategy, 
the 
in 
Commission 
comments: 
fulfilled 

line  with 

36 

 
 
 
 
 
 
20.  The  government  adopts 
implementing  legislation  for 
the  new  law  on  anti-money 
the 
laundering  (AML)  and 
fight 
terrorism, 
against 
including  on  virtual  asset 
service providers  

Remarks 

is 

of 

the 

expected 

first 
Disbursement 
instalment 
for 
Q2 2024,  subject  to  a  continued 
positive track record with the IMF 
programme  and  to  fulfilment  of 
the political pre-condition and the 
policy conditions 

37 

 
 
 
 
Annex 1: MFA operations by date of decision, 1990-2023 

38 

MFA Operations 1990 - 2023 by Date of Decision (amounts in million EUR)Country1990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023TotalNumber of operationsBulgaria2901102501007504Czech & Slovak Fed. Rep.3753751Estonia40401Hungary87018010502Latvia80801Lithuania1001001Romania375801252007804Slovakia1301301Algeria4002006002Israel188187.51Jordan18020070010803Lebanon80801Tunisia30050060014003Armenia581001582Belarus55551Georgia17533.5464645150495.56Moldova45151515459010010015014572010Ukraine852001501105001000180010001200252003124510Albania703520251803305Bosnia & Herzegovina60601002504704Kosovo (UNSCR 1244)3530501002154North Macedonia 4080181601003985Montenegro2060802Serbia2002001Serbia & Montenegro345130705453Tajikistan95951Kyrgyz Republic30301Amount approved87018084800620255155231504601653933157025083.5125044659000256130018007001001045035000253502454168941689No. of operations approved166062141543411022042003212120100228080* MFA received before becoming EU Member StateAcecssion and Pre-AccessionCurrent Member States*Neighbourhood SouthNeighbourhood EastOther 
 
 
 
Annex 2: Status of disbursements made by date of decision at end-December 2023 

39 

Status of effective disbursements as of end-December 2022 (in millions of €) AuthorisationsDisbursementsCountry Date ofReference ofMaximumDates ofAmounts ofTotalsUndisbursedDecisionDecisionamountdisbursementsdisbursementsdisbursedHungary22.02.9090/83/EC870Apr. 1990350610260(Loan)Feb. 1991260Czech and 25.02.9191/106/EC375Mar. 1991185375Slovak Federal RepublicMar. 1992190Hungary24.06.9191/310/EC180Aug. 1991100180(Loan)Jan. 199380Bulgaria24.06.9191/311/EC290Aug. 1991150290(Loan)Mar. 1992140Romania22.07.9191/384/EC375Jan. 1992190375(Loan)Apr. 1992185Israel22.07.9191/408/EC187.5Mar. 1992187.5187.5(Loan)Algeria23.09.9191/510/EC400Jan. 1992250400(Loan)Aug. 1994150Albania28.09.9292/482/EC70Dec. 19923570(Grant)Aug. 199335Bulgaria19.10.9292/511/EC110Dec. 199470110(Loan)Aug .199640Baltics23.11.9292/542/EC22013585(Loans); of which:    Estonia(40)Mar. 199320(20)(20)    Latvia(80)Mar. 199340(40)(40)    Lithuania(100)July 199350(75)(25)Aug. 199525Romania27.11.9292/551/EC80Feb. 19938080(Loan)Moldova13.06.9494/346/EC45Dec. 19942545(Loan)Aug. 199520Romania20.06.9494/369/EC125Nov. 199555125(Loan)Sep. 199740Dec. 199730Albania28.11.9494/773/EC35June 19951535(Grant)Oct. 199620EU MACRO-FINANCIAL AND EXCEPTIONAL FINANCIAL ASSISTANCE TO THIRD COUNTRIES BY DATE OF DECISION 
 
 
40 

Algeria23.09.9191/510/EC400Jan. 1992250400(Loan)Aug. 1994150Albania28.09.9292/482/EC70Dec. 19923570(Grant)Aug. 199335Bulgaria19.10.9292/511/EC110Dec. 199470110(Loan)Aug .199640Baltics23.11.9292/542/EC22013585(Loans); of which:    Estonia(40)Mar. 199320(20)(20)    Latvia(80)Mar. 199340(40)(40)    Lithuania(100)July 199350(75)(25)Aug. 199525Romania27.11.9292/551/EC80Feb. 19938080(Loan)Moldova13.06.9494/346/EC45Dec. 19942545(Loan)Aug. 199520Romania20.06.9494/369/EC125Nov. 199555125(Loan)Sep. 199740Dec. 199730Albania28.11.9494/773/EC35June 19951535(Grant)Oct. 199620Algeria22.12.9494/938/EC200Nov. 1995100100100(Loan)Slovakia22.12.9494/939/EC130July 1996130(Loan)Ukraine22.12.9494/940/EC85Dec. 19958585(Loan)Belarus10.04.9595/132/EC55Dec. 1995303025(Loan)Ukraine23.10.9595/442/EC200Aug. 199650200(Loan)Oct. 199650Sep. 1997100Moldova25.03.9696/242/EC15Dec. 19961515(Loan)Former Yugoslav 22.07.9797/471/EC40Sep. 19972540Republic of MacedoniaFeb. 199815(Loan)Bulgaria22.07.9797/472/EC250Feb. 1998125250( Loan)Dec. 1998125Armenia, Georgia 17.11.9797/787/EC(375)(294.5)and Tajikistanamended by(Loans and Grants)28.3.0000/244/EC Agreed amounts with the recipent countires:328294.533.5Armenia(58)Dec. 1998 (Loan)28(58)(Loan and Grant)Dec. 1998 (Grant)8Dec.  1999 (Grant)4Feb. 2002 (Grant)5.5Dec. 2002 (Grant)5.5June 2004 (Grant)5.5Dec. 2005 (Grant)1.5Georgia(175)Jul. 1998 (Loan)110(141.5)(33.5)(Loan and Grant)Aug. 1998 (Grant)10Sep. 1999 (Grant)9Dec. 2001 (Grant)6Dec. 2004 (Grant)6.5Tajikistan(95)Mar. 2001 (Loan)60(95)(Loan and Grant)Mar. 2001 (Grant)7Dec. 2001 (Grant)7Feb. 2003 (Grant)7May. 2005 (Grant)7Oct. 2007 (Grant)7 
 
41 

Ukraine15.10.9898/592/EC150July 1999585892(Loan)12.07.0202/639/ECAlbania22.04.9999/282/EC2020( Loan)Bosnia10.05.9999/325/EC60Dec. 1999 (Grant)1560(Loan and Grant)amended byDec. 1999 (Loan)1010.12.0101/899/ECDec. 2000 (Grant)10Dec. 2000 (Loan)10Dec. 2001 (Grant)15Bulgaria08.11.9999/731/EC100Dec. 199940100(Loan)Sep. 200060Former Yugoslav 08.11.9999/733/EC80Dec. 2000 (Grant)2098Republic of18Dec. 2000 (Loan)10Macedonia10.12.0101/900/ECDec. 2001 (Loan)12(Loan and Grant)Dec. 2001 (Grant)10May 2003 (Grant)10June 2003 (Loan)10Dec. 2003 (Loan)18Dec. 2003 (Grant)8Romania08.11.9999/732/EC200June 200010015050(Loan)July 200350Kosovo19.02.0000/140/EC35Mar. 20002035(Grant )Aug. 200015Montenegro22.05.0000/355/EC20Aug. 2000720(Grant )Dec. 200013Moldova10.07.0000/452/EC1515(Loan)19.12.0202/1006/ECKosovo27.06.0101/511/EC30Sep. 20011530(Grant) Dec. 200215Serbia and 16.07.0101/549/EC345Oct. 2001 (Loan)225345MontenegroOct. 2001 (Grant)35(ex FRY)10.12.0101/901/ECJan. 2002 (Grant)40(Loan and Grant)Aug. 2002 (Grant)45Ukraine12.07.0202/639/EC110May. 2014 100110(Loan) Amendment of Decision Nov. 2014 1098/592/ECamended byamended by 
 
 
 
 
42 

Serbia and 05.11.0202/882/EC130Dec. 2002 (Grant)3010525MontenegroFeb. 2003 (Loan)10(ex FRY)Aug. 2003 (Grant)35(Loan and Grant)Aug. 2003 (Loan)30Bosnia05.11.0202/883/EC60Feb. 2003 (Grant)1525 the rest was (Loan and Grant)Dec. 2003 (Grant)10paid under04/861/ECMoldova19.12.0202/1006/EC1515(Grant)Serbia and 25.11.0303/825/EC70Dec. 2004 101020Montenegro the rest was (ex FRY)paid underAmendment of Decision 02/882/EC (Grant)04/862/ECAlbania29.04.0404/580/EC25Nov. 2005 (Grant)325(Loan and Grant)Mar. 2006 (Loan)9July 2006 (Grant)13Bosnia07/12/200404/861/ECthe balance ofDec. 2004 (Loan)1035Amendment of Decision 02/883/ECJune 2005 (Grant)1502/883/EC (Loan and Grant)Feb. 2006 (Loan)10Serbia and 07.12.200404/862/ECthe balance ofApr. 2005 (Loan)1540Montenegro03/825/ECDec. 2005 (Grant)25(ex FRY)Amendment of Decision 02/882/EC (Loan and Grant)Georgia        24.01.0606/41/EC33.5Aug. 2006 112211.5(Grant)Dec. 2006 11Kosovo 30.11.0606/880/EC50Sep. 2010 303020(Grant)Moldova16.04.0707/259/EC45Oct. 2007 2045(Grant)Jun. 200810Dec. 2008 15Lebanon10.12.0707/860/EC80Dec. 2008 (Grant) 154040(Loan and Grant)June 2009 (Loan)25Georgia30.11.0909/889/EC46Dec. 2009 15.346(Grant)Jan. 2010 7.7Aug. 2010 23Armenia30.11.0909/890/EC100June 2011 (Grant)14100(Loan and Grant)July 2011 (Loan)26Dec. 2011 (Grant)21Feb. 2012 (Loan)39Bosnia and 30.11.0909/891/EC100Feb. 2013 50100Herzegovina (Loan)Oct. 2013 50Serbia 30.11.0909/892/EC200July 2011100100100(Loan) 
 
 
 
  
43 

Ukraine 29.06.10646/2010/EU500Nov. 2014 250500(Loan)Apr. 2015250Moldova20.10.10938/2010/EU90Dec. 2010 4090(Grant)Sep. 2011 20Apr. 2012 30Georgia12.08.13778/2013/EU46Jan. 2015 (Grant)1346(Loan and Grant)Apr. 2015 (Loan)10May 2017 (Grant)10May 2017 (Loan)13Kyrgyz Republic 22.10.131025/2013/EU30Jun. 2015 (Grant)1030(Loan and Grant)Oct. 2015 (Loan)5Feb. 2016 (Grant)5Apr. 2016 (Loan)10Jordan11.12.131351/2013/EU180Feb. 2015100180(Loan)Oct. 201580Tunisia15.5.14534/2014/EU300May 2015100300(Loan)Dec. 2015100July 2017100Ukraine14.04.142014/215/EU1 000.0June 20145001 000.0(Loan)Dec. 2014500Ukraine15.04.152015/601/EU 1 800.0July 20156001 200.0 600.0(Loan)Apr. 2017600Tunisia06.07.162016/1112/EU 500.0Oct. 2017200 500.0(Loan)June 2019150Oct. 2019150Jordan14.12.162016/2371/EU  200.0Oct. 2017100 200.0(Loan)July 2019100Moldova13.09.172017/1565/EU 100.0Oct. 201930 60.0 40.0(Loan and Grant)July 202030Georgia18.04.20182018/598/EU 45.0Dec. 201820 45.0(Loan and Grant)Nov. 202025Ukraine 04.07.20182018/947/EU1 000.0Dec. 2018 5001 000.0(Loan) May. 2020500Jordan17.01.20202020/33/EU 500.0Nov. 2020100 500.0(Loan)Jul. 2021200May 2023200Moldova06.04.222022/563/EU 150.0Aug 202250 100.0(Loan and Grant)May 202350Moldova14.06.232023/1165/EU  100.0Oct-2350 50.0 50.0(Loan and Grant) 
 
 
 
 
44 

COVID-19 MFA Package:Jordan25.05.20202020/701/EU 200.0Nov. 2020150 200.0(Loan)Jul. 202150Tunisia25.05.20202020/701/EU 600.0Ju. 2021300 600.0(Loan)May 2022300Georgia25.05.20202020/701/EU 150.0Nov. 202075 75.0 75.0(Loan)(cancelled)Moldova25.05.20202020/701/EU 100.0Nov. 202050 100.0(Loan)Oct. 202150Ukraine25.05.20202020/701/EU1 200.0Dec. 20206001 200.0(Loan)Oct. 2021600Albania25.05.20202020/701/EU 180.0Mar. 202190 180.0(Loan)Nov. 202190Bosnia and Herzegovina25.05.20202020/701/EU 250.0Oct. 2021125 125.0 125.0(Loan) (cancelled)Kosovo25.05.20202020/701/EU 100.0Oct. 202050 100.0(Loan)Jun. 202150Montenegro25.05.20202020/701/EU 60.0Oct. 202030 60.0(Loan)Jun. 202130North Macedonia25.05.20202020/701/EU 160.0Oct. 202080 160.0(Loan) Jun. 202180Focus: Ukraine new MFAsUkraine28.02.20222022/313/EU1 200.0Mar. 20226001 200.0(Loan)May 2022600Ukraine 12.07.20222022/1201/EU1 000.0Aug. 2022 10001 000.0(Loan) Ukraine20.09.20222022/1628/EU5 000.0Oct. 202220005 000.0(Loan)Nov. 20222500Dec. 2022500Ukraine 14.12.20222022/2463/EU18 000.0Jan-23300018 000.0(Loan) Mar-231500Apr-231500May-231500Jun-231500Jul-231500Aug-231500Sep-231500Oct-231500Nov-231500Dec-231500 
 
 
  
 
Annex 3: MFA amounts authorised23 by year, 2006-2023 (EUR million)24 

Chart 3A: MFA amounts authorised by year, 2015-2023 (EUR million) 

Chart 3B: MFA amounts authorised by region, 2006-2023 (%) 

Pre-Accession
3.4%

Neighbourhood 
East 89.3%

Pre-Accession
3.4%

Neighbourhood 
East 18.4%

Neighbourh
ood South
7.2%

Exceptional 
MFA
70.9%

Neighbourhood 
South
7.2%

23 Authorised amounts refer to the amounts agreed to in the MFA Decisions, which may differ from the 

disbursed amounts (Annex 4). 

24 MFA+ statistics also included in the year 2022. 

45 

200620072008200920102011201220132014201520162017201820192020202120222023TotalBy regionAccession and Pre-Accession  50.0  300.0  750.0  100.0 1 200.0Neighbourhood East  33.5  45.0  146.0  590.0  46.0 1 000.0 1 800.0  100.0 1 045.0 1 450.0 25 350.0  145.0 31 750.5Neighbourhood South  80.0  180.0  300.0  700.0 1 300.0 2 560.0Other  30.0  30.0Total amounts authorised   83.5  125.0  0.0  446.0  590.0  0.0  0.0  256.0 1 300.0 1 800.0  700.0  100.0 1 045.0  0.0 3 500.0  0.0 25 350.0  245.0 35 540.5Loans  0.0  50.0  0.0  365.0  500.0  218.0 1 300.0 1 800.0  700.0  60.0 1 035.0 3 500.0 25 320.0  200.0 35 048.0Grants  83.5  75.0  0.0  81.0  90.0  38.0  40.0  10.0  0.0  30.0  45.0  492.51 More detailed information is available in the statistical data of the staff working document 
 
 
 
 
 
Annex 4: MFA amounts disbursed by year, 2006-2023 (EUR million) 

Chart 4A: MFA amounts disbursed by year, 2015-2023 (EUR million) 

Chart 4B: MFA amounts disbursed by region, 2006-2023 (%) 

Other; 
0,1%

Neighbourho
od South; 
7,3%

Accession and 
Pre-Accession; 
2,6%

Accession and Pre-Accession; 2,6

Neighbourhood 
East,
16.9%

Neighbourhood 
South; 7,3

Other; 
0,1

Neighbourhood 
East; 90.0%

Exceptional 
MFA; 73,1

46 

200620072008200920102011201220132014201520162017201820192020202120222023TotalBy regionAccession and Pre-Accession  32.0  30.0  100.0  100.0  160.0  465.0  887.0Neighbourhood East  29.0  20.0  25.0  15.3  70.7  81.0  69.0 1 360.0  873.0  623.0  520.0  30.0 1 280.0  650.0 7 250.0 18 122.5 31 018.5Neighbourhood South  15.0  25.0  380.0  400.0  400.0  250.0  550.0  300.0  200.0 2 520.0Other  15.0  15.0  30.0Total amounts disbursed  61.0  20.0  40.0  40.3  100.7  181.0  69.0  100.0 1 360.0 1 268.0  15.0 1 023.0  520.0  430.0 1 690.0 1 665.0 7 550.0 18 322.5 34 455.5Loans  19.0  0.0  0.0  25.0  0.0  126.0  39.0  100.0 1 360.0 1 245.0  10.0 1 013.0  515.0  420.0 1 170.0 1 665.0 7 535.018290.0 33 532.0Grants  42.0  20.0  40.0  15.3  100.7  55.0  30.0  23.0  5.0  10.0  5.0  10.0  15.0  0.0  15.0  32.5  418.5