During the visit of Mr Štefan Füle, EU Commissioner for Enlargement and European Neighbourhood Policy, a Memorandum of Understanding on a EUR 100 million loan was signed by Minister of Finance and Treasury of Bosnia and Herzegovina, Mr Dragan Vrankić. The assistance will support the authorities programme of necessary fiscal adjustments and structural reforms with a view to ensuring sustainable external and fiscal accounts.

The Macro-Financial Assistance (MFA) is an exceptional crisis response instrument available to EU neighbours. It is conditional on, and complements the adjustment programme agreed by Bosnia and Herzegovina with the International Monetary Fund (IMF).

The EU is confident that MFA can help Bosnia and Herzegovina to better face the current economic challenges, such as the necessary fiscal consolidation and the reform of the system of social benefits.

The important financial support of the EU shall be disbursed in two instalments of tentatively up to EUR 50 million each. The main condition for the disbursement of the first instalment is not yet fulfilled: the Fiscal Council of Bosnia and Herzegovina needs to approve the Global Fiscal Framework.

The European Commission encourages the authorities of Bosnia and Herzegovina to fulfil this condition as soon as possible.