The first regular disbursements of money from the "Western Balkans Growth Plan" are expected between the second and third quarters of this year, once the necessary conditions are met, a spokesperson for the European Commission (EC) announced.
In a response to the state news agency of North Macedonia MIA, it is written that for the implementation of reforms prepared by the six countries of the region within the framework of the Growth Plan, pre-financing of up to seven percent of the total amount foreseen for them may be requested.
This was requested by all five beneficiaries with approved reform agendas, except for Bosnia and Herzegovina (BiH), which has not yet submitted its reform agenda.
The EC is now finalizing procedural steps that should allow for the payment of pre-financing as soon as possible in 2025. The first regular payments are expected between the second and third quarters of 2025 upon fulfillment of the stipulated conditions, the spokesperson said.
The EC adopted the Reform Agenda at the end of October last year, the fulfillment of which is a condition for withdrawing money from the Reform and Growth Instrument under the "Growth Plan for the Western Balkans". The plan is a combination of grants and soft loans totaling six billion euros for the period 2024-2027. 383,5 million euros have been provided for Montenegro, of which 110 million euros are grants and 273,5 million euros are soft loans. The EC plans to allocate seven percent of the total amount at the beginning of the implementation of the "Growth Plan" as a kind of pre-financing, and the rest in six semi-annual tranches of support, depending on the degree of implementation of the planned reforms.
Media in the region reported over the weekend that the first disbursements from the Western Balkans Growth Plan will not be made in the first half of this year, as previously announced.
According to these allegations, the impasse is a consequence of the fact that the countries of the region need to conclude loan agreements with the European Union, because some of the funds that will be allocated to them under the Plan are in the form of loans, and some are grants, so each of these agreements has the character of an international treaty that must be ratified by the parliament of each country.
On December 27 last year, the Parliament of North Macedonia adopted, through an abbreviated procedure, the Law on Borrowing with a Loan from the European Union under the Loan Agreement from the Reform and Growth Instrument for the Western Balkans, which allows for the payment of 750.000 euros from the Growth Plan as pre-financing.
North Macedonia, with the full implementation of reforms from the Reform Agenda, will receive a total of 750.354.553 euros in 2024-2027, of which 535.012.159 euros is a loan and 215.342.394 euros is a grant.
Of this, 349.095.433 euros of the loan are intended for budget support, 185.916.725 euros of loans and 215.342.394 euros of grants for investment projects.
At least 37 percent of the grant will be allocated for climate goals.
All funds withdrawn from the loan will be repaid no later than 40 years from the date of signing the loan agreement, including a grace period of up to ten years, the Ministry of Finance of North Macedonia stated when proposing the law.
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