INCREASED FINANCIAL ASSISTANCE
The €6 billion Reform and Growth Facility for the Western Balkans combines grants and loans. This new instrument will complement the current financial assistance under the Instrument for Pre-accession Assistance (IPA III).
The Facility has a total financial envelope of €6 billion for 2024-2027, composed of:
- €2 billion grants as per agreement on the revision of the Multi-annual Financial Framework
- €4 billion of highly concessional loans
HOW WILL THE NEW FACILITY WORK?
At least 50% of total amount (grants and loans) will go to investments through the Western Balkans Investment Framework (WBIF). The remaining amount of loans will benefit Governments in the Western Balkans. The release of any funds will depend on the progress in the implementation of the measures contained in the Reform Agendas.
Payments will be done twice a year, based on requests submitted by the Western Balkan partners and following verification by the Commission of the achievement of the relevant payment conditions, pre-conditions and general conditions, such as macro-financial stability, sound public financial management, transparency and oversight of the budget.
In case the payment conditions are not met, the Commission will suspend or deduct a corresponding amount from the payment. The Western Balkan partner will have 1-2 years to fulfill the conditions, otherwise the amount will be redistributed among the other ones in the subsequent years.
