Memorandum on EU macrofinancial assistance amouting to 250 million euros signed

Memorandum on EU macrofinancial assistance amouting to 250 million euros signed

SARAJEVO, December 31 (FENA) – Deputy Chairman of the BiH Council of Ministers and Minister of Finance and Treasury Vjekoslav Bevanda signed a Memorandum of Understanding between the European Union and Bosnia and Herzegovina today, providing BiH with a 250-million-euro loan for macro-financial assistance.

This memorandum is signed on behalf of the EU by the European Commissioner for Economy Paolo Gentilon, and on behalf of the Central Bank of BiH, as an agent of the borrower, the signatory is Governor Senad Softić.

Minister Bevanda emphasized that the goal of EU macro-financial assistance is to mitigate the consequences of the crisis caused by the Covid-19 pandemic, and is part of other resources that the country has received from other international financial institutions to support economic stability.

“The funds from this loan will be disbursed in two installments, each of which amounts to 125 million euros, and the disbursement of the first installment is expected after the entry into force of the Memorandum and the accompanying credit line agreement, which we also signed. This agreement regulates the procedures for the payment of assistance to BiH,” Bevanda explained.

He added that BiH had been negotiating the loan for a long time because all internal procedures as well as the coordination mechanism during decision-making had to be followed.

“The most important thing is that we have successfully reached an agreement of all of us within BiH and it is acceptable for the EU, and the continuation of activities is prescribed by this memorandum as well as our legal procedures on borrowing,” Bevanda emphasized.

This memorandum, in accordance with previous decisions of the European Parliament and the Council of the European Union of BiH, made available macro-financial assistance in the amount of 250 million euros in the form of a loan.

After the signing, Bevanda thanked the EU for its readiness to help Bosnia and Herzegovina in this extremely challenging time and congratulated all participants on the successful completion of negotiations, the Ministry of Finance and Treasury of BiH announced.