EU FUNDS

External Assistance

Macro Financial Assistance

Macro Financial Assistance

Macro-financial assistance (MFA) supports the political and economic reform efforts of the beneficiary countries and is implemented in association with support programmes from the IMF and the World Bank.

It has promoted policies that are tailored to specific country needs with the overall objective of stabilising the financial situation and establishing market-oriented economies.

MFA typically offers long-term loans, but in some cases has been made available as a grant or as a combination of loan and grant. It has also been combined with PHARE, TACIS or CARDS programmes to strengthen the capacity of institutions that were essential to the success of the necessary structural reform measures.

EC macro-financial assistance concentrates in the Balkan countries (Albania, Bosnia and Herzegovina, and Serbia and Montenegro) particularly those that formerly comprised the Republic of Yugoslavia. Elsewhere, the Council decided on operations for some Newly Independent States (Ukraine, Belarus, Armenia, Azerbaijan, Tajikistan, Kazakhstan, Georgia, Tajikistan, Kyrgyz Republic, Moldova, Russia) and a few countries of the Mediterranean, a region that also receives other forms of macroeconomic support from the EU, notably under the MEDA Structural Adjustment Facilities.

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