REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of macro-financial assistance to third countries in 2024
Date: 2025-06-23
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, 23.6.2025  COM(2025) 330 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of macro-financial assistance to third countries in 2024 {SWD(2025) 166 final}  
 
 
CONTENTS 

1. 

INTRODUCTION ..................................................................................................... 2 

2.  MACRO-FINANCIAL ASSISTANCE OPERATIONS IN 2024 ......................... 3 

2.1 

Eastern Partnership .......................................................................................................... 4 

•  Moldova ........................................................................................................................... 4 

•  Ukraine ............................................................................................................................ 5 

2.2 

Southern Neighbourhood ................................................................................................ 6 

•  Egypt ................................................................................................................................ 6 

2.3  Western Balkans .............................................................................................................. 8 

•  North Macedonia ............................................................................................................. 8 

3.  ENSURING THE PROPER USE OF MFA FUNDS: OPERATIONAL 
ASSESSMENTS, EX POST EVALUATIONS ............................................................... 9 

3.1 

3.2 

Operational assessments .................................................................................................. 9 

Evaluations .................................................................................................................... 10 

4.  GENERAL DEVELOPMENTS RELATED TO THE MFA INSTRUMENT .. 10 

4.1 

Functioning of the MFA instrument .............................................................................. 10 

4.2  MFA in the 2021-2027 multiannual financial framework ............................................ 11 

5.  LOOKING AHEAD – MFA OPERATIONS AND BUDGETARY SITUATION 
IN 2025 ............................................................................................................................. 12 

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REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT 
AND THE COUNCIL 
on the implementation of macro-financial assistance to third countries in 2024 1 

1.  INTRODUCTION 
Macro-financial  assistance  (MFA)  is  an  EU  financial  instrument 2  provided  to  partner 
countries experiencing a balance of payments crisis. Since its inception in 1990, MFA has 
helped  to  improve  macroeconomic  and  financial  stability  in  countries  neighbouring  or 
geographically  close  to  the  EU  while  encouraging  structural  reforms.  Its  provision  is 
conditional  on  a  non-precautionary  credit  arrangement  agreed  with  the  International 
Monetary Fund (IMF)3. It seeks to relieve the partner country of the immediate pressure to 
address the underlying problems causing the stress in the balance of payments. This allows 
it to increase its fiscal space, improve its debt sustainability and focus on driving necessary 
reforms. By smoothening the macroeconomic adjustment path, MFA operations can have 
positive  economic  and  social  impacts  so  that  the  country  has  more  time  and  scope  to 
address the root causes of its balance-of-payments crisis. 

MFA most often takes the form of loans funded through EU bonds. Since January 2023, 
the  MFA  funding  approach  has  changed  from  a  back-to-back 4  approach  to  a  unified 
structure, where bond issuances are decoupled from specific disbursements. Instead, the 
Commission now issues single branded EU bonds and channels the proceeds to a central 
funding pool, which in turn finances multiple EU policy programmes (including the MFA). 
In  some  cases,  MFA  may  consist  entirely  of  loans,  while  in  other  cases  it  may  be  a 
combination of loans and grants. 

MFA is released in instalments and only if all the economic policy conditions tied to these 
instalments,  as  agreed  with  the  partner  country,  are  fulfilled.  There  is  also  a  political 
precondition  for  granting  MFA  that  requires  compliance  with  democratic  mechanisms 
(including a multi‐party parliamentary system and observing the rule of law, and respect 
for  human  rights).  MFA  also  thus  complements  regular  EU  cooperation  assistance  and 
contributes to achieving the wider goals of preserving stability and promoting prosperity 
and EU values beyond its borders. This is supported by the findings of several independent 
evaluations of completed MFA operations 5 as well as the recent meta-evaluation of the 
last decade of operations 6. 

In  2024,  which  was  a  year  of  heightened  challenges  amid  fast-evolving  geopolitical 
developments, the MFA continued to demonstrate its ability to swiftly and effectively react 

1 This report is based on information available up to March 2025. 
2 The  legal  basis  for  MFA  to  third  countries  other  than  developing  countries  is  Article 212  of  the  Treaty  on  the 
Functioning of the European Union (TFEU). Article 213 TFEU may be used as a legal basis when the third country 
requires urgent financial assistance. 
3  An exception from this precondition was made in the setting up of the exceptional support MFA+ support provided to 
Ukraine following Russia’s full-scale invasion in February 2022. 
4 In duly justified cases (e.g. small amount, strong beneficiary preference for specific loan structure), the back-to-back 
approach where the Commission issues bonds and transfers the proceeds directly to the beneficiary country can apply 
(e.g. loans disbursements to Moldova in July and December 2024). 
5 All evaluations are available on the Commission’s website: https://ec.europa.eu/info/evaluation-reports-economic-and-
financial-affairs-policies-and-spending-activities_en. 
6 SWD (2023) 0016, Commission Staff Working Document, Evaluation of macro-financial assistance to third countries 
(meta-evaluation of operations for 2010-2020). 

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to  exceptional  circumstances,  while  also  maintaining  its  core  mission  of  promoting 
stability.  The  MFA  provided  in  the  context  of  the  G7’s  Extraordinary  Revenue 
Acceleration (ERA) loan initiative for Ukraine – prompted by Russia’s continuing war of 
aggression  –  reaffirmed  the  Union’s  commitment  to  translate  solidarity  into  tangible 
support for Ukraine, while also assisting other partners dealing with the war’s economic 
repercussions. Escalating hostilities in the Middle East have also prompted the Union to 
provide MFA to key players in the region. 

The 2024 report has been prepared in line with the Commission’s information obligations 
as laid down in the relevant legal acts. It is accompanied by a Commission staff working 
document, which provides a more detailed analysis of the implementation of individual 
MFA operations. 

2.  MACRO-FINANCIAL ASSISTANCE OPERATIONS IN 2024 

In  2024,  amid  Russia’s  intensifying  aggression  against  Ukraine  and  the  country’s 
continuing  financing  needs,  the  Union  adopted  a  new  exceptional  MFA  package  for 
Ukraine under the G7 ERA loan initiative. Following the disbursement of EUR 18 billion 
in 2023 under the MFA+ programme, the Ukraine Facility became the  Union’s primary 
budgetary  support  instrument  for  Ukraine  in  2024,  providing  EUR 16.5 billion  of 
budgetary assistance. Nevertheless, as a result of Russia’s ongoing aggression, Ukraine’s 
financing needs remained at exceptionally high levels in 2024. This prompted the G7’s 
leaders to  pledge  in  mid-2024  EUR 45 billion in ERA loans  that are to  be repaid  using 
extraordinary  revenues  generated  from  immobilised  Russian  sovereign  assets.  The  EU 
built on this pledge by adopting Regulation (EU) 2024/2773 establishing the Ukraine Loan 
Cooperation Mechanism (ULCM) and providing exceptional MFA to Ukraine, worth up 
to EUR 18.1 billion in highly concessional terms to alleviate pressures on Ukraine’s public 
finances to the extent possible. The loans have 45-year maturity and a 10-year grace period. 
The repayment will depend primarily on the extraordinary revenues linked to immobilised 
Russian  sovereign  assets.  Following  the  release  of  the  MFA  in  December  2024, 
disbursements are scheduled throughout 2025. 

In  2024,  the  Union  also  disbursed  the  final  tranches  of  its  amended  MFA  to  Moldova, 
which was designed to help address the effects of the energy crisis that started in October 
2021  and  to  counter  the  spillovers  from  Russia’s  ongoing  aggression  against  Ukraine. 
Meanwhile,  half  of  the  EUR 100 million  MFA  agreed  for  North  Macedonia  was 
successfully  disbursed,  supporting  the  country  amid  tight  global  financial  conditions, 
rising  energy prices and unexpected state-owned electricity losses. The second  and last 
tranche of the MFA is available until 2026 but appears unlikely to be drawn due to a lack 
of progress in implementing policy conditions. 

In March 2024, recognising Egypt’s critical financial situation and its important stabilising 
role  in  the  region,  the  Commission  proposed  EUR 5 billion  in  MFA,  including  a 
EUR 1 billion  urgent  short-term  operation  that  was  disbursed  in  December  2024, 
contingent  on  economic  reforms  and  human  rights  benchmarks.  The  proposal  for  the 
remaining EUR 4 billion remains under consideration by the European Parliament and the 

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Council, along with the Commission’s MFA proposal for Jordan, which is expected to be 
adopted in Q2 25. 

The implementation status of MFA operations in 2024 (by region) 

2.1  Eastern Partnership 

•  Moldova 

Moldova has been recovering from the energy crisis in 2021. Its economic recovery began 
in  2023  and  strengthened  in  2024,  with  GDP  growth  of  2.6%.  Stronger  private 
consumption thanks to low inflation and rising real wages have, together with recovering 
investment,  offset  weak  export  growth.  Real  wages  continued  to  increase  while  looser 
monetary  policy  has  conditions  have  supported  consumer  lending  and  investment.  The 
current account deficit increased in 2024 after a sharp decline in 2023, driven by a larger 
trade deficit caused by declining goods exports and stable imports. Rising services exports, 
led by the ICT sector, partially offset the decline in goods exports. Remittances continued 
to fall to 11.4% of GDP in Q2 2024, while FDI inflows as a share of GDP declined during 
the first three quarters of 2024. The budget deficit in 2024 narrowed to 3.9% of GDP in 
2024  on  account  of  stronger  revenue  collection,  lower  capital  expenditure  and  the 
improved targeting of support measures to mitigate the impact of high energy prices on 
households.  In  2024,  the  government  remained  reform-oriented  and  committed  to 
macroeconomic  stability  but  downside  risks  (particularly  in  relation  to  the  energy 
situation) remained high. EU accession negotiations were officially launched in 2024 and 
a referendum saw a narrow majority in favour of the proposed constitutional changes with 
a view to joining the EU. 

Moldova was hit hard by the energy crisis in 2021. Following a request by Moldova on 
19 November 2021,  the  Commission  adopted  a  proposal  for  MFA  of  EUR 150 million 
(EUR 120 million in medium-term loans and a EUR 30 million grant). The Parliament and 
the Council adopted a decision to this effect on 6 April 2022 (Decision (EU) 2022/563). 
The  Memorandum  of  Understanding  (MoU),  the  loan  facility  agreement  and  the  grant 
agreement relating to this MFA were signed on 22 June 2022 and ratified by the Moldovan 
Parliament on 14 July 2022. 

In response to the increasing direct and indirect impact of Russia’s war of aggression on 
Ukraine on Moldova’s economy, the Commission adopted a proposal on 24 January 2023 
to increase the ongoing MFA by EUR 145 million. Up to EUR 100 million of this was in 
the form of loans and EUR 45 million in grants. The European Parliament and the Council 
adopted a decision to this effect on 14 June 2023 (Decision (EU) 2023/1165). This decision 
increased the overall support provided through this MFA to EUR 295 million (including 
EUR 75 million in grants). The additional financial assistance under the MFA came as part 
of  a  larger  EU  support  package  to  Moldova,  which  the  President  of  the  Commission 
announced  in  November  2022,  and  which  also  contained  EUR 105 million  of  budget 
support. 

The  MFA  was  released  in  five  instalments,  in  accordance  with  the  amended  MoU  that 
entered into force on 5 September 2023. The first instalment of EUR 50 million (including 
EUR 15 million  in  grants)  was  released  on  1 August 2022.  The  second  instalment  of 
EUR 50 million  (EUR 10 million  in  grants)  was  released  on  22 March 2023.  The  third 
instalment (i.e. the first ‘additional instalment’ from the additional MFA) was released on 
25 October 2023  (EUR 50 million  in  loans)  and  27 October 2023  (EUR 22.5 million  in 

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grants). The fourth instalment (i.e. the second ‘additional instalment’ from the amended 
MFA) was  released on 18 July 2024 (EUR 50 million in loans and EUR 22.5 million in 
grants). The fifth and final instalment was released on 17 December (EUR 45 million in 
loans) and 18 December 2024 (EUR 5 million in grants). 

The  disbursement  of  the  MFA  was  subject  to  a  positive  track  record  under  the  IMF’s 
Extended Credit  Facility / Extended  Fund  Facility  (ECF/EFF)  for Moldova,  which  was 
adopted  in  December  2021  and  further  increased  in  May  2022.  After  the  increase,  the 
Fund’s programme amounts to USD 815 million. In December 2023, the IMF Executive 
Board also approved an arrangement for Moldova under the Resilience and Sustainability 
Facility (for an amount equivalent to USD 173 million), to support Moldova’s efforts to 
strengthen  resilience  against  climate  shocks,  support  energy  sector  reforms,  enhance 
domestic  financial  sector  preparedness  and  mobilise  sustainable  finance.  Following  the 
abrupt dismissal of the Governor of the National Bank of Moldova (NBM) in December 
2023,  discussions  have  taken  place  on  the  importance  of  good  governance  and  the 
independence of the Central Bank. This led to a number of measures that allowed the IMF 
to successfully conclude the fifth review under the ECF/EFF arrangements and the first 
review under the RSF on 28 June 2024. On 17 December 2024, the  IMF completed the 
sixth  review  under  the  ECF/EFF  arrangements  and  the  second  review  under  RSF  with 
Moldova, allowing a disbursement of USD 162.6 million. The IMF programme is expected 
to include two more reviews and run until October 2025. 

• 

Ukraine 

Amid the severe destruction caused to human and physical capital since Russia’s full-scale 
invasion  in  2022,  Ukraine’s  economy  has  shown  remarkable  resilience.  GDP  grew  by 
5.3% in 2023 and is projected to have grown by 3.5% in 2024, although some slowdown 
in growth was observed in the second half of 2024. The recovery has been supported by 
the reopening of export routes (particularly through the Black Sea and the Danube) and 
strong  international  financial  assistance  (including  from  the  EU’s  exceptional  MFA  in 
2023 and the Ukraine Facility’s implementation, starting in 2024). Inflation, which had 
declined  significantly  in  2023,  accelerated  in  late  2024  due  to  rising  electricity  costs 
following intensified attacks on energy infrastructure and due to strong wage growth amid 
labour shortages. The National Bank of Ukraine tightened monetary policy in response, 
raising the policy rate to 14.5% in January 2025. The current account deficit widened to 
7.6% of GDP in 2024, mainly due to a reduction in international grants, while the trade 
deficit remained stable as increased imports for defence and reconstruction offset export 
gains.  Despite  the  challenging  environment,  the  banking  sector  remains  stable  and 
profitable,  with  decreasing  non-performing  loan  ratios  and  sufficient  capital  buffers. 
Public finances remain under pressure, with a fiscal deficit of 19.1% of GDP in 2024 that 
was largely driven by high defence and reconstruction expenditures.  Tax measures are 
expected to strengthen revenues in 2025, but the fiscal gap remains substantial. Looking 
ahead,  growth  prospects  are  clouded  by  uncertainty  related  to  (energy)  infrastructure 
destruction, labour shortages and the future course of the war. In this context, sustained 
international support remains crucial for Ukraine’s economic stability and ability to face 
Russia’s war of aggression. 

Following the disbursement of EUR 18 billion under the MFA+ programme in 2023, the 
Ukraine  Facility  became  the  Union’s  primary  budgetary  support  instrument  in  2024, 
providing EUR 16.5 billion in assistance under Pillar I. Nevertheless, Russia’s escalating 
and continuing aggression further increased the financing needs for 2024 and beyond. A 
residual financing gap emerged despite the support provided through the Ukraine Facility 

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and contributions from other partners. In response, G7 leaders made a commitment at their 
June 2024 summit in Apulia, Italy, to provide Ukraine with EUR 45 billion in ERA loans 
that  would  be  repaid  using  future  extraordinary  revenues  generated  from  immobilised 
Russian sovereign assets held in the Union and other relevant jurisdictions. 

the  Commission 

this  commitment, 

Building  on 
submitted  a  proposal  on 
20 September 2024  for  a  regulation  of  the  European  Parliament  and  of  the  Council 
establishing a Ukraine Loan Cooperation Mechanism and providing exceptional MFA to 
Ukraine.  The  European  Parliament  and  the  Council  adopted  this  proposal  on 
24 October 2024 as Regulation (EU) 2024/2773 (the ULCM Regulation), which entered 
into force on 29 October 2024. On the basis of the confirmed contributions by G7 partners 
following the G7 finance ministers meeting of 25 October 2024 in Washington DC, the 
Union confirmed an MFA loan of EUR 18.1 billion to Ukraine that was to be released via 
a single instalment. The Decision authorising the release of the sole instalment was adopted 
on 18 December 2024 by the European Commission, and the first disbursement to Ukraine 
for an amount of EUR 3 billion took place on 10 January 2025. Subsequent disbursements 
will follow throughout 2025. 

Given  the  exceptional  circumstances,  this  MFA  features  highly  concessional  terms. 
Ukraine  remains  formally  liable  for  repaying  the  ERA  loans,  but  the  repayments  are 
intended  to  be  financed  through  the  extraordinary  revenues  generated  from  the 
immobilised Russian assets. Ukraine is therefore not expected to use its own resources to 
directly  repay  the  loans.  Repayments  will  instead  be  managed  via  the  ULCM,  so  that 
Ukraine can front-load the benefits of these extraordinary revenues while minimising the 
impact on its public finances. Furthermore, if the extraordinary revenues prove insufficient 
to repay the MFA loan, the highly concessional 45-year maturity and 10-year grace period 
before principal repayments begin will provide ample room to ensure the stabilisation of 
Ukraine’s  macro-fiscal  situation.  This  financing  arrangement  not  only  reduces  the 
immediate strain on Ukraine’s public finances but also ensures that debt service flows will 
remain  manageable  when  they  begin  in  the  2030s,  significantly  mitigating  the  risks  to 
financial  stability  during  the  recovery  period.  The  inflow  of  revenues  to  the  ULCM 
depends on the continuing immobilisation of these assets, which is subject to the renewal 
of  sanctions  every  six  months.  The  Council  adopted  the  most  recent  renewal  on 
27 January 2025. The renewal of the sanctions requires unanimity in the Council. 

the  disbursement  of 

As  with  previous  MFA  programmes, 
this  exceptional 
EUR 18.1 billion MFA loan was conditional on the fulfilment of policy commitments set 
out in the MoU between the Union and Ukraine. The MoU, which was endorsed by the 
Member  States  Committee  on  MFA  on  7 November 2024,  entered  into  force  on 
4 December 2024. The successful implementation of the policy conditions consistent with 
a  selection  of  those  underpinning  the  Ukraine  Plan  (covering  key  reform  areas  such  as 
macro-financial stability,  state-owned enterprises, public administration, the rule of law 
and  defence)  enabled  the  release  of  the  sole  instalment  of  the  MFA  loan  on 
18 December 2024. 

2.2  Southern Neighbourhood 

• 

Egypt 

An  increasingly  volatile  situation  in  Palestine  has  had  repercussions  for  the  region, 
including Egypt. Starting in 2024, however, economic sentiment in Egypt has significantly 
improved following the unification of the fragmented exchange rate regime in March 2024, 
supported by large financing commitments by international partners. Real GDP grew by 
2.4%  during  the  last  fiscal  year  (FY,  July-June  2023/24)  (down  from  3.8%  during 

6 

 
 
FY22/23) and reached 3.5% year-on-year during the Q3 2024. Unemployment remained 
broadly stable, reaching 6.7% in September 2024 (up from 7.0% in 2024). Consumer price 
inflation remained high at 24.1% in December 2024, but this was lower than the temporary 
peak  of  35.7%  in  February  2024.  Between  February  and  December,  official  reserves 
increased  from  USD 35.3 billion  to  USD 47.1 billion  (covering  around  10  months  of 
imports). This was due to sequential allocations from the landmark Ras El-Hekma deal, a 
USD 35 billion investment from a United Arab Emirates sovereign fund into a real estate 
project on Egypt’s north coast. The fiscal deficit in FY23/24 also benefited from the one-
off proceeds from the Ras El-Hekma, narrowing to 3.6% of GDP in FY23/24 (compared 
with  -6.2%  of  GDP  during  the  previous  FY).  The  primary  balance  improved  markedly 
during the same period. The IMF estimates that public debt fell to 90.9% of GDP by the 
end of FY23/24 (down from 95.9% the FY before) as some of the revenue from the Ras El-
Hekma investment deal was used for debt reduction. The current account deficit worsened 
to 5.5% of GDP in FY23/24 (compared with a 1.2% of GDP deficit the FY before). The 
unification of exchange rates and the confidence boost from international support since 
March has supported exports and tourism, but the drag on the current account from the 
Red Sea disruptions has been protracted and will probably ease only gradually. 

On  the  17  of  March  2024,  the  EU  and  Egypt  agreed  to  deepen  their  relationship  and 
develop  a  strategic  and  comprehensive  partnership  for  shared  prosperity,  stability  and 
security, covering specific areas of cooperation. Underpinning the partnership is a financial 
package  of  up  to  EUR 7.4 billion  consisting  of  short-  and  longer-term  support  for  the 
necessary  macro-fiscal  and  socio-economic  reform  agenda.  Given  Egypt’s  difficult 
economic  and  financial  situation  and  its  role  as  an  important  stabilising  factor  in  an 
increasingly volatile region, the Commission proposed on 15 March 2024 to support Egypt 
with  two MFA operations  of up to  EUR 5 billion  taken together  in  highly concessional 
long-term loans. The MFA package was divided into (i) a proposal for a short-term MFA 
operation  of  EUR 1 billion  (exceptionally  based  on  Article 213  TFEU7)  to  allow  full 
disbursement in a single instalment in 2024 in view of Egypt’s urgent financing needs (and 
the European Parliament’s recess ahead of the elections in the summer of 2024); and (ii) a 
proposal for a regular MFA operation of up to EUR 4 billion (based on Article 212 TFEU). 
The Council adopted the short-term MFA on 12 April 2024 (Decision (EU) 2024/1144) . 
The European Parliament and the Council are currently considering the proposal for the 
regular MFA. 

The MFA package was proposed in conjunction with an augmented IMF EFF, based on a 
staff-level  agreement  reached  on  6 March 2024  that  was  then  adopted  by  the  IMF 
Executive  Board  on  29 March 2024.  The  programme,  which  was  first  adopted  in 
December 2022, was increased from USD 3 billion to USD 8 billion and provides a strong 
anchor for further progress on economic reforms. The IMF and Egypt reached a staff-level 
agreement on the fourth review on 24 December 2024. 

The short-term MFA was underpinned by an MoU. The MoU stipulated the disbursement 
of the support in a single instalment and contained a set of agreed economic policy reforms 
to improve macroeconomic stability and resilience, enhance the business environment and 
competitiveness, and advance the green transition. In line with the MoU, the disbursement 
of  the  support  was  subject  to:  (i) the  implementation  of  the  agreed  economic  policy 
reforms; (ii) the implementation of concrete and credible steps towards respecting effective 
democratic  mechanisms  (including  a  multi-party  parliamentary  system)  and  the  rule  of 
law,  and  guaranteeing  respect  for  human  rights;  and  (iii) an  on-track  disbursing  IMF 
programme.  The  overall  implementation  assessment  was  positive.  The  MFA  Release 

7 Article 213 TFEU is applicable in cases where urgent financial assistance is needed and requiring only adoption by the 
Council. 

7 

 
 
Decision was adopted on 18 December 2024 and the single instalment was fully disbursed 
on 27 December 2024. 

2.3  Western Balkans 

• 

North Macedonia 

The post-COVID-19 recovery of the economy remains slow. Real output increased by 2.8% 
in 2024. Growth was driven by investment and by public consumption, with the latter partly 
reflecting  a  strong  rise  in  public  sector  wages.  Supported  by  increasing  real  incomes, 
household  consumption  growth  picked  up,  too.  The  external  balance  made  a  negative 
contribution to growth as demand from key export markets was weak.   Inflation, which 
had moderated earlier in the year, rose again as of September to a year-on-year average 
of 3.5%, down from 9.4% in 2023. This late-in-the-year increase was mainly driven by 
rising  prices  of  food,  alcohol  and  tobacco,  despite  government-imposed  price  caps  on 
basic goods. While the decline in energy prices took the current account balance into a 
small surplus at the end of 2023, it slipped back into deficit in 2024 (-2.3%), on the back 
of a deterioration in the merchandise trade deficit and a lower secondary income surplus. 
The primary income deficit also widened.  

On  6 February 2023,  the  Commission  adopted  a  proposal  to  provide  MFA  to  North 
Macedonia for an amount of up to EUR 100 million in loans, to be disbursed in two equal 
instalments. Decision of the European Parliament and of the Council was adopted on 12 
July 2023 (Decision (EU) 2023/1461) and the MoU was signed with the North Macedonian 
authorities in January 2024. The MoU contains 20 policy conditions (8 of which relate to 
the  first  disbursement)  in  the  following  areas:  public  finance;  business  environment; 
education and labour market; energy; and judiciary, good governance and the fight against 
corruption. The Commission confirmed that all the conditions for the first instalment had 
been  met  and  decided  on  22  April  2024  to  release  the  corresponding  EUR  50  million 
disbursement. 

The MFA is contingent on a positive track record regarding the ongoing IMF programme. 
On 22 November 2022 and following the authorities’ request and a staff-level agreement, 
the IMF Board adopted a 24-month arrangement under the precautionary and liquidity line. 
In January 2024, the IMF completed the first review of the programme. However, the IMF 
precautionary  and  liquidity  line  expired  in  November  2024  without  the  second  review 
taking place, which means that one essential precondition for disbursing the second and 
final instalment from the MFA is currently not fulfilled. 

The first half of the MFA was successfully disbursed, but the second and final tranche of 
the MFA appears unlikely to be drawn. The new government has not made progress in 
implementing  the  policy  conditions  attached  to  the  final  instalment  of  EUR 50 million, 
which  include  ensuring  parliamentary  adoption  of  several  laws,  including  secondary 
legislation to the energy efficiency law and implementing legislation for the new law on 
anti-money laundering. In addition, North Macedonia has recently contracted two bilateral 
loans  of  EUR 500 million  each  at  a  favourable  interest  rate  from  the  Hungarian  state-
owned Eximbank, which alleviates external financing needs. Under these circumstances, 
the disbursement of the second MFA tranche is rather unlikely. The availability period of 
the MFA ends in August 2026. 

8 

 
 
 
3.  ENSURING THE PROPER USE OF MFA FUNDS: OPERATIONAL 

ASSESSMENTS, EX POST EVALUATIONS 

3.1  Operational assessments 

In  line  with  the  requirements  of  Regulation  (EU,  Euratom)  2024/2509  (the  Financial 
Regulation), the Commission carries out operational assessments with the help of external 
consultants  to  obtain  reasonable  assurances  on  the  functioning  of  administrative 
procedures and financial circuits in beneficiary countries. 

Operational  assessments  focus  on  public  financial  management  (PFM)  systems 
(particularly how finance ministries and central banks are organised and what procedures 
they implement) and – more specifically – on how the accounts receiving EU financial 
assistance are managed. Special attention is also paid to the functioning, independence and 
work programmes of external audit institutions, and how effective their checks are. Public 
procurement procedures at central level are also examined. 

A 2020 operational assessment for Moldova, conducted ahead of the COVID-19 operation, 
highlighted significant progress in PFM systems and financial circuits since the last review 
in 2015. It concluded that Moldova’s financial procedures are suitable for a subsequent 
MFA  programme.  The  latest  operational  assessment  of  Ukraine’s  administrative  and 
financial circuits was conducted in 2022, preceding the exceptional MFA support and the 
MFA+.  It  was  the  third  of  such  assessments  undertaken  in  Ukraine,  albeit  conducted 
remotely due to wartime conditions. Overall, it concluded that considerable progress had 
been  made  in  strengthening  public  financial  management  systems  and  other  financial 
circuits since the last exercise in 2018. It also highlighted the ongoing commitment of the 
Ukrainian authorities to continuous improvement. The assessment emphasised prioritising 
public financial management reforms in key areas and recommended further action once 
security improves, given the significant reconstruction efforts ahead. The Ukraine Facility 
includes strong audit and control measures, including the creation of an independent audit 
board  tasked  with  assessing  the  effectiveness  of  Ukraine’s  management  and  control 
systems and conducting regular on-the-ground audits. 

In 2023, an operational assessment of North Macedonia was conducted for the new MFA 
operation.  External  consultants  found  the  country’s  financial  circuits  and  procedures 
satisfactory and deemed its public financial management system generally sound, noting 
significant recent progress. 

Two  operational  assessments  were  conducted  in  2024  in  preparation  for  the  new  MFA 
operations  in  Egypt  and  Jordan,  with  the  first  part  of  the  MFA  of  the  former  fully 
implemented in 2024 and the remainder expected to be adopted by co-legislators in 2025 
alongside that of Jordan. The operational assessment for Egypt was the second since 2013 
and part of it was conducted remotely due to security clearance delays. Egyptian authorities 
have  made  significant  progress,  including  introducing  new  legislation  governing  public 
financial  management  and  banking  operations.  Egypt’s  public  financial  management 
framework and financial circuits were considered to be adequate for the MFA programme 
– provided that reform momentum continues. The operational assessment for Jordan was 
the second since 2020 and confirmed progress in improving PFM systems and enhancing 
the  efficiency  of  public  funds.  However,  challenges  remain, 
including  limited 
independence and transparency of the Audit Bureau; underutilisation of the Procurement 
Complaints Review Committee; and an underdeveloped secondary market for government 
securities. Despite these issues, the assessment concluded that Jordan’s financial systems 
provide  a  strong  foundation  for  the  MFA  programme.  The  findings  of  the  operational 
assessments for Jordan and Egypt will be considered when developing the economic policy 
conditionality for both MFAs. 

9 

 
3.2  Evaluations 

In  line  with  the  Financial  Regulation  and  the  corresponding  MFA  decisions,  the 
Commission conducts evaluations 8 after the completion of MFA operations to assess their 
impact. The two main objectives of these evaluations are to analyse the impact of a MFA 
on  the  beneficiary  country’s  economy,  especially  on  the  sustainability  of  its  external 
position, and to assess the added value of Union’s action. 

In 2024, the Commission concluded the joint ex post evaluation of the operations for the 
Eastern Partnership countries of Moldova, Georgia and Ukraine (2017-2020). The external 
report and accompanying staff working document were published in January 2025. For all 
three  countries,  the  study  concluded  that  operations  had  a  positive  impact  on  debt 
sustainability  and  the  macroeconomic  situation.  This  was  particularly  significant  for 
Ukraine, given the larger scale of the operation and its more challenging macroeconomic 
situation. Overall, the evaluation concluded that the three operations were  successful in 
fostering a positive change in several key reform areas and that they were consistent with 
the  overall  EU  policy  framework,  aligning  with  authorities’  reform  agendas  and  other 
donors’ programmes. 

In 2024, the Commission launched the ex post evaluation on COVID-19 MFA operations 
to  10  partner  countries  (2020-2022),  to  be  published  alongside  the  accompanying  staff 
working  document  in  2025.  The  evaluation  study  will  assess  the  EUR 3 billion  MFA 
package provided in 2020 to partners across the Eastern Neighbourhood, Western Balkans, 
and Southern Neighbourhood regions to mitigate the economic impact of the COVID-19 
pandemic. 

4.  GENERAL DEVELOPMENTS RELATED TO THE MFA INSTRUMENT 

4.1  Functioning of the MFA instrument 

The  2013  Joint  Declaration  of  the  European  Parliament  and  of  the  Council  on  MFA 9 
frames the assistance as being of a macroeconomic and financial nature and clearly states 
that its aim is ‘to restore a sustainable external finance situation for eligible countries and 
territories  facing  external  financing  difficulties’.  For  the  MFA  to  be  successful  as  an 
emergency instrument, it is therefore important to mobilise it effectively and in a timely 
manner.  Decision-making  involving  the  ordinary  legislative  procedure  has  often  been 
identified as time-consuming, which is a major shortcoming for a crisis instrument that is 
meant to respond quickly to a balance of payments crisis 10. 

However, in exceptional circumstances linked to the COVID-19 crisis and Russia’s war of 
aggression  against  Ukraine,  the  relevant  MFA  packages  benefited  from  a  very  rapid 
adoption that was made possible because all institutions made full use of the procedural 
flexibilities  at  their  disposal.  In  these  cases,  the  European  Parliament  and  the  Council 
agreed  on  the  use  of  existing  urgency  procedures  that  made  it  possible  for  the 
corresponding assistance to be adopted within a month of the Commission submitting its 
proposals. The European Parliament invoked a specific clause (Rule 163) in its Rules of 
Procedure so that it could adopt the proposal directly in its plenary, thus skipping the usual 
International Trade (INTA) Committee stage. 

8 All evaluations are available on the Commission’s website: https://ec.europa.eu/info/evaluation-reports-economic-and-
financial-affairs-policies-and-spending-activities_en. 
9 Joint Declaration by the European Parliament and the Council adopted together with the  Decision providing further 
macro-financial  assistance  to  Georgia  (Decision  No 778/2013/EU  of  12 August 2013).  Available  at:  https://eur-
lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013D0778&from=EN. 
10 A meta-evaluation of the last decade of operations was held in 2023 – SWD(2023) 0016, Commission staff working 
document, Evaluation of macro-financial assistance to third countries (meta-evaluation of operations for 2010-2020). 

10 

 
 
 
The Rules of Procedure of both the European Parliament and the Council provide an urgent 
procedure  necessary  for  swift  adoption  in  exceptional  situations,  but  the  standard 
procedure  takes  significantly  more  time.  This  was  shown  in  the  case  of  the  recent 
Commission proposal for the MFA to Jordan, which was proposed in April 2024 but is not 
expected  to  be  adopted  before  Q2  25.  This  long  delay  is  partly  due  to  the  European 
Parliament elections in June 2024 and the subsequent need to reconstitute its committees. 
In the case of Egypt, the urgent need to be able to provide a first part of the support as soon 
as the second half of 2024 prompted the Commission to exceptionally decide in March 
2024 to propose a first urgent but short-term MFA operation to help Egypt on the basis of 
Article 213  TFEU  (applicable  in  cases  where  urgent  financial  assistance  is  needed  and 
requiring only adoption by the Council). The Commission recognising that this was not an 
ideal approach, however, and therefore proposed to provide the bulk of the MFA support 
for Egypt via a second and more medium-term MFA operation that is following the normal 
procedures  under  Article 212  TFEU  (involving  both  co-legislators  rather  than  just  the 
Council).  In  this  context,  it  is  important  to  note that  the  simplified  procedure 11  for  the 
adoption of a European Parliament decision has been amended. In contrast to the urgent 
procedure, the simplified procedure does not require a request from the President to treat 
the proposal as urgent and it streamlines the adoption process by requiring fewer steps for 
approval than the standard procedure. This procedure has not yet been used for ongoing 
MFAs but could fit well with the emergency nature of the MFA and is a welcome step 
towards potentially increasing the effectiveness of regular operations. 

The exceptional ERA MFA for Ukraine was once again conducted without an explicit link 
to an IMF programme (even if Ukraine is benefiting from a satisfactory disbursing EFF). 
In addition, it benefited from provisioning through the EU budget’s headroom, as for the 
MFA+. It was granted on highly concessional terms, featuring a 45-year maturity and a 
10-year  grace  period.  Repayments,  including  interest  and  any  other  costs  related  to  the 
loan,  are  covered  by  the  extraordinary  revenues  arising  from  the  immobilised  Russian 
central bank assets, thus minimising the impact on Ukraine’s public finances. 

The  ongoing  preparations  for  the  next  multiannual  financial  framework  (MFF)  are  an 
opportunity to draw lessons from recent experiences with MFA. This could feed reflection 
on the future of the MFA with the European Parliament and the Council. 

4.2  MFA in the 2021-2027 multiannual financial framework 

The current MFF period has been characterised by an unusual degree of stress on many 
economies, stemming from the implications of the COVID-19 pandemic across the globe. 
Moreover,  the  EU’s  partner  countries  continue  to  be  vulnerable  due  to  structural 
weaknesses in their own economies. The region also remains exposed to high geopolitical 
uncertainty and continues to experience economic instability that is further exacerbated by 
Russia’s war of aggression against Ukraine and, most recently, by the escalating conflict 
in the Middle East. Given the continued challenging global outlook, the need for the EU 
to be able to provide MFA is likely to remain high in the years to come although it is, by 
the  very  nature  of  a  crisis  instrument,  impossible  to  predict  its  scope.  It  is  therefore 
important to make sure that sufficient budgetary resources remain available for the MFA 
instrument in last years of the current MFF.  

11 Under the simplified procedure (Rule 52 of the Rules of Procedure of the European Parliament), the chair of the EP 
committee  may  propose  that  the  proposal  be  approved  without  amendment.  Unless  members  or  a  political  group  or 
groups reaching at least the medium threshold in the committee object, the proposed procedure is considered approved. 
Alternatively, the Chair may propose the setting of a deadline for tabling amendments without a draft report having first 
been drawn up. Unless members or a political group or groups reaching at least the medium threshold in the committee 
object, the proposed procedure is considered approved. 

11 

 
 
 
MFA  loans  are  guaranteed  by  the  External  Action  Guarantee  under  Regulation  (EU) 
2021/947  (the  “NDICI_GE  Regulation”)  at  a  provisioning  rate  of  9%,  as  was  the  case 
under previous MFFs 12. The total budget initially earmarked for the provisioning of MFA 
loans  was  fixed  at  around  EUR 1 billion,  which  translates  into  a  volume  of  loans  of 
EUR 11 billion. Since the beginning of the current MFF in 2021 and in the context of the 
EU’s sizeable support to Ukraine via MFA in 2022, around two thirds of the earmarked 
provisioning had already been used by the end of 2023. In this context and following the 
extraordinary European Council of 1 February 2024 on the MFF mid-term revision, around 
EUR 225 million of provisioning liabilities related to the exceptional MFA operation of 
EUR 5 billion  to  Ukraine  disbursed  in  2022  were  transferred  to  the  Ukraine  Facility. 
Combined with reinforcements of the budget for the provisioning of MFA loans, this has 
allowed the mobilisation of sufficient resources to fund the adopted short-term MFA to 
Egypt of up to EUR 1 billion. This reinforcement of the budget under NDICI would allow 
funding of a regular MFA operation for Egypt of up to EUR 4 billion should it be adopted 
by the co-legislators, while leaving some room for other MFA operations until the end of 
2027 (see Section 5 below). 

5.  LOOKING AHEAD – MFA OPERATIONS AND BUDGETARY SITUATION IN 2025 

Considering  the  non-programmable  and  crisis-driven  nature  of  MFA,  it  is  difficult  to 
provide an accurate prediction for future operations for the remainder of the current MFF. 
This section therefore focuses on operations already approved in 2025 and also points to 
potential operations, highlighting the fast-evolving geopolitical developments. 

The  ongoing  Middle  East  conflict  has  heightened  economic  uncertainty  and  severely 
impacted the countries in the region. Operations are already planned for Egypt and Jordan, 
which have suffered from declines in tourism and trade exposing both countries’ structural 
weaknesses. Egypt’s reliance on volatile external financing and excessive state control has 
intensified  balance  of  payments  pressure.  In  Jordan,  the  conflict  added  to  other  recent 
external shocks, which have worsened budget deficits and structural issues, driving high 
public debt and financing needs. Other countries in the region are also deeply affected. 

On  8 October 2023,  the  Jordanian  authorities  asked  for  an  MFA  operation  of 
EUR 700 million  (MFA IV).  In  response,  on  8 April 2024,  the  Commission  proposed  a 
new MFA package of up to EUR 500 million. This proposal was developed following a 
careful  assessment  of  Jordan’s  external  financing  needs  and  its  capacity  to  cover  these 
needs,  both  in  line  with  the  principles  of  fair  burden-sharing  among  donors  in  close 
coordination with the IMF and in line with the new Extended Fund Facility for Jordan for 
USD 1.2 billion for 2024-2027. In January 2025, Jordan submitted a request for the new 
MFA of EUR 1 billion (i.e. an increase of EUR 500 million to the MFA as proposed by 
the Commission), amid continued regional uncertainty, further implications for its fiscal 
and economic outlook, and the need to protect the momentum of its reform agenda. The 
co-legislators’  adoption  of  the  MFA  IV  operation  (amounting  to  EUR 500 million)  is 
expected  in  Q2 2025,  with  three  disbursements  expected  between  2025  and  2027.  On 
29 January  2025,  President  von  der  Leyen  announced  that  the  Commission  would  put 
forward an additional MFA proposal  of  EUR 500 million, which is  expected for spring 
2025. 

12 Regulation (EU) 2021/947 (the NDICI-Global Europe instrument) was adopted and entered into force in June 2021. 
The Regulation plays an important role in the budgetary set-up of MFA, but the MFA instrument as such remains separate 
from  NDICI-Global  Europe  and  specific  MFA  operations  continue  to  be  activated,  as  needed,  by  separate  ad  hoc 
decisions. 

12 

 
 
 
The co-legislators are currently considering the second leg of EUR 5 billion MFA to Egypt 
–the bulk of the MFA package of up to EUR 4 billion for 2025-2027. This MFA would 
support Egypt amid external shocks, notably Russia’s continued war of aggression against 
Ukraine  and  spillovers  from  the  escalations  in  the  Middle  East.  Resulting  portfolio 
outflows and falling foreign currency receipts from lower tourism and Suez Canal revenues 
have contributed to a significant widening of the external financing gap, with continued 
downside risks due to the complex geopolitical situation. The adoption of the decision is 
currently expected in the second quarter of 2025. 

In November 2022, Tunisia requested an MFA of EUR 1.2 billion to support its financing 
needs in the context of the worsened global environment and high international commodity 
prices. This followed the staff-level agreement reached with the IMF in October 2022 for 
a new extended fund facility (four years, USD 1.9 billion). However, the IMF Board has 
not yet adopted the programme because prior actions have not yet been implemented by 
Tunisia, notably regarding fuel subsidy reform. Buoyant tourism and steady remittances 
have  temporarily  eased  the  external  financing  pressure  on  Tunisia.  Subject  to  a  careful 
assessment of MFA preconditions and Tunisia’s external financing needs, the Commission 
stands ready to prepare a proposal for a new MFA once the IMF programme is in place. 
This  was  also  confirmed as part of the comprehensive  partnership between  the EU and 
Tunisia agreed in July 2023. It was noted that this would require substantial and forceful 
implementation of additional reforms. 

In  April  2022,  Lebanon  reached  a  staff-level  agreement  with  the  IMF  (four years, 
USD 3 billion) but has made only limited progress on its long list of prior actions. Its GDP 
has since continued to shrink, many public institutions have stopped functioning and the 
currency has dramatically lost value, leading to broad-based dollarisation of the Lebanese 
economy. In January 2025, the Lebanese Parliament elected a president, and a new prime 
minister was appointed a few days later, ending more than five years of political deadlock 
and  creating  the  conditions  for  a  new  push  for  reforms.  In  February  2025,  the  new 
government  expressed  its  intention  to  re-engage  with  the  IMF  for  a  new  programme, 
underscoring  a  potential  positive  step  in  addressing  the  economic  crisis  through 
international  assistance  and  comprehensive  reforms.  The  Commission  stands  ready  to 
support a comprehensive reform agenda with an MFA operation once the preconditions 
(including an updated on-track disbursing IMF programme) are fulfilled. 

Similarly, sudden shifts in the political landscape in Syria in December 2024 resolved long-
standing political deadlock with the ousting of Assad’s regime. With a new government, 
which is still in its infancy and where many parameters are still unclear (e.g. the human 
rights situation), there is at least a theoretical possibility that meaningful engagement by 
the EU, potentially complemented by an MFA, could follow in the future. 

In the Eastern Neighbourhood and Western Balkans, economic developments continue to 
be shaped by Russia’s war of aggression against Ukraine, driving trade shifts and financial 
disruptions.  Beyond  Ukraine,  the  war  has  strained  households  and  businesses,  fuelling 
inflation  and  increasing  financing  needs  across  countries  in  both  regions.  Ukraine  and 
Moldova remain reliant on substantial international aid, with the EU playing a key role. 
The EU’s EUR 50 billion Ukraine Facility (2024-2027), along with the recently approved 
ERA  MFA,  supports  Ukraine’s  resilience.  Moldova’s  Growth  Plan  (EUR 1.9 billion, 
2025-2027) aims to boost market access and income convergence. The Reform and Growth 
Facility for the Western Balkans will provide up to EUR 6 billion (2024-2027) in grants 
and loans, supporting an acceleration in these countries’ reform efforts. 

The Commission stands ready to consider any other forthcoming requests for MFA and 
will, if appropriate, propose new and/or follow-up MFA operations to eligible partners. 

13 

 
Table 1  provides  an  overview  of  commitments  and  payments  of  MFA  grants  and  the 
disbursement of MFA loans for 2022, 2023, 2024 and (tentatively) 2025. 

14 

 
Table 1: Commitments and payments for MFA grants and disbursements of MFA 
loans 2022-2025 (EUR) 13 

2022 

2023 

2024 

2025 

Commitment appropriations for grants in the 
budget 

30 114 460 

45 423 330 

57 367 177 

59 267 773 

Operational assessments, ex post evaluations 

114 460 

350 000 

619 440 

700 000 

Other possible MFA operations 

30 000 000 

45 073 330 

56 747 737 

58 567 773 

Commitments, total 

30 114 460 

45 423 330 

57 367 177 

59 267 773 

Payment appropriations for grants in the 
budget 

20 868 187 

39 880 000 

57 367 177 

59 267 773 

Operational assessments, ex post evaluations 

- 

329 765 

749 270 

700 000 

MFA Moldova (EU 2022/563) completed 

15 000 000 

10 000 000 

5 000 000 

MFA Moldova (top-up) (EU 2023/1165) 
completed 

Other possible MFA operations 

- 

- 

22 500 000 

22 500 000 

- 

- 

58 567 773 

Payments, total 

15 000 000 

32 829 765 

23 249 270 

59 267 773 

Unused allocations for grants payments 

5 868 187 

7 050 235 

34 117 907 

Disbursements of MFA loans 

MFA Jordan III (completed) 

MFA Moldova (completed) 

Emergency MFA Ukraine (completed) 

Exceptional MFA Ukraine (completed) 

MFA Moldova top-up (completed) 

MFA+ Ukraine (completed) 

MFA North Macedonia 

Short-term MFA Egypt (completed) 

MFA ERA Ukraine 

MFA Jordan (in preparation) * 

MFA Egypt (in preparation) * 

- 

- 

200 000 000 

- 

- 

35 000 000 

40 000 000 

45 000 000 

1 200 000 000 

6 000 000 000 

- 

- 

- 

- 

50 000 000 

50 000 000 

18 000 000 000 

- 

50 000 000 

1 000 000 000 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

18 116 000 000 

300 000 000 

1 333 000 000 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Disbursements of MFA loans, total 

7 235 000 000 

18 090 000 000 

1 145 000 000 

19 749 000 000 

COVID-19 MFA operations: completed 

MFA Tunisia (completed) 

300 000 000 

Disbursements of COVID-19 MFA loans, total 

300 000 000 

- 

- 

- 

- 

- 

- 

Disbursements of all MFA loans, total 

7 535 000 000 

18 090 000 000 

1 145 000 000 

19 749 000 000 

* For Jordan and Egypt, the amounts of loans to be disbursed in 2025 are very tentative, because the MFA operations are 
currently under preparation and have not yet been adopted by the co-legislators. 

13 This table does not take into account any proposal for new MFA operations after December 2024. 

15