Aruanne - SWD(2026) 160, COM(2026) 294

EN EN

EUROPEAN COMMISSION

Brussels, 23.6.2026

COM(2026) 294 final

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND

THE COUNCIL

on the implementation of macro-financial assistance to third countries in 2025

{SWD(2026) 160 final}

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CONTENTS

1. INTRODUCTION ..................................................................................................... 2

2. MACRO-FINANCIAL ASSISTANCE OPERATIONS IN 2025 ......................... 3

2.1 Eastern Neighbourhood ......................................................................................................... 3

• Ukraine ............................................................................................................................ 3

2.2 Southern Neighbourhood ...................................................................................................... 5

• Egypt ................................................................................................................................ 5

• Jordan ............................................................................................................................... 6

2.3 Western Balkans .................................................................................................................... 8

• North Macedonia ............................................................................................................. 8

3. ENSURING PROPER USE OF MFA FUNDS: OPERATIONAL

ASSESSMENTS AND EX POST EVALUATIONS ...................................................... 9

3.1 Operational assessments ........................................................................................................ 9

3.2 Evaluations .......................................................................................................................... 10

4. GENERAL DEVELOPMENTS RELATED TO THE MFA INSTRUMENT .. 11

4.1 Functioning of the MFA instrument .............................................................................. 11

4.2 MFA in the 2021-2027 multiannual financial framework ............................................ 12

4.3 MFA as proposed in the next multiannual financial framework 2028-2034

Commission’s proposal ............................................................................................................. 13

5 LOOKING AHEAD – MFA OPERATIONS AND THE BUDGETARY

SITUATION IN 2026 ..................................................................................................... 14

Table 1: Commitments and payments for MFA grants and disbursements of MFA loans 2023-

2026 (EUR) ............................................................................................................................... 16

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REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT

AND THE COUNCIL

on the implementation of macro-financial assistance to third countries in 20251

1. INTRODUCTION

Macro-financial assistance (MFA) is an EU financial instrument2 provided to partner

countries experiencing balance-of-payments difficulties. Since its introduction in 1990,

MFA has contributed to strengthening macroeconomic and financial stability in countries

neighbouring or geographically close to the EU, including candidate countries, while

supporting their implementation of structural reforms. Its provision is generally conditional

on the existence of a non-precautionary arrangement with the International Monetary Fund

(IMF). A political precondition also applies to MFA operations, requiring respect for

human rights and effective democratic mechanisms, including a multi-party parliamentary

system and the rule of law, complying with the principles and objectives of the external

action of the Union laid in Article 21(1) TEU.

MFA is designed to alleviate immediate external financing pressures and to help resolve

the underlying causes of balance-of-payments stress. By providing timely and targeted

financial assistance, it enables beneficiary countries to increase fiscal space, improve debt

sustainability, and advance necessary reforms. By smoothing the macroeconomic

adjustment path, MFA operations can mitigate adverse economic and social impacts,

thereby allowing partner countries sufficient time to address the root causes of their

balance-of-payments crisis.

MFA is mainly provided in the form of long-term concessional loans, although operations

may combine loans and grants where appropriate. MFA loans are financed under the EU’s

diversified funding strategy, whereby the Commission issues single-branded EU bonds

and channels the proceeds into a central funding pool that finances multiple EU policy

programmes, including MFA. MFA grants are financed directly from the EU budget.

MFA is usually released in instalments, subject to the fulfilment of clearly defined

economic policy conditions agreed with the partner country. MFA complements regular

EU cooperation assistance and contributes to the EU’s broader objectives of safeguarding

stability, fostering prosperity, and promoting EU values beyond its borders. This

assessment is supported by several independent ex post evaluations of MFA operations3,

and by the 2023 meta-evaluation covering all MFA operations evaluated between 2010

and 20204.

1 This report is based on information available up to April 2026. 2 The legal basis for MFA to third countries other than developing countries is Article 212 of the Treaty on the

Functioning of the European Union (TFEU). Article 213 TFEU may be used as a legal basis when the third country

requires urgent financial assistance. 3 All ex post evaluations are available on the Commission’s website: https://ec.europa.eu/info/evaluation-reports-

economic-and-financial-affairs-policies-and-spending-activities_en. 4 Commission staff working document, Evaluation of macro-financial assistance to third countries (meta-evaluation of

operations for 2010-2020), SWD(2023) 16.

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In 2025, the MFA instrument continued to demonstrate its capacity to respond swiftly and

effectively to exceptional circumstances, while maintaining its core mission of

safeguarding macroeconomic stability and promoting structural reforms. In Ukraine, the

EU disbursed EUR 18.1 billion in MFA loans as part of the G7 ‘Extraordinary Revenue

Acceleration Loans for Ukraine’ (ERA) initiative5. Although specific in its features, as for

previous MFA operations, this support aimed to address the country’s acute financing

needs and support its economic resilience, amid ongoing attacks by Russia resulting in

heavy damage to Ukraine’s critical infrastructure and significant macroeconomic

repercussions. At the same time, MFA operations for Egypt and Jordan helped stabilise

their economies amid heightened challenges arising from the complex and unstable

regional situation in the Middle East and the need to accelerate important structural

reforms.

The 2025 MFA annual report has been prepared in accordance with the Commission’s

reporting obligations under EU law. It is accompanied by a Commission staff working

document providing a more detailed assessment of the implementation of individual MFA

operations.

2. MACRO-FINANCIAL ASSISTANCE OPERATIONS IN 2025

In 2025, the EU provided macro-financial assistance to Ukraine, Egypt and Jordan.

In the face of Russia’s continued war of aggression, Ukraine remained the biggest MFA

recipient, with EUR 18.1 billion disbursed throughout the year as part of the G7 ERA

initiative, under which a total of EUR 45 billion in loans were made available, to be repaid

from extraordinary revenues from immobilised Russian sovereign assets. In the Southern

Neighbourhood, in June 2025 the co-legislators approved a EUR 4 billion MFA operation

for Egypt, of which EUR 1 billion was disbursed in January 2026. In addition, in

April 2025 the co-legislators approved a EUR 500 million MFA operation for Jordan, with

EUR 250 million disbursed in September 2025. In August 2025, the Commission

proposed an additional EUR 500 million MFA operation for Jordan. Finally, with respect

of the Western Balkans, there was no further progress with the ongoing EUR 100 million

MFA operation for North Macedonia.

2.1 Eastern Neighbourhood

• Ukraine

Amid the severe destruction caused to human and physical capital since Russia’s full-scale

invasion in 2022, Ukraine’s economy has continued to demonstrate notable resilience,

although growth has slowed markedly in recent quarters. After a 3.5% increase in 2024,

real GDP growth weakened in 2025 to 1.8% owing to intensified attacks on energy

infrastructure, labour shortages and continued capacity constraints. The economy has

continued to rely heavily on the functioning of export corridors through the Black Sea and

the Danube, as well as sustained international financial assistance, including support

5 Regulation (EU) 2024/2773 of the European Parliament and of the Council of 24 October 2024 establishing the Ukraine

Loan Cooperation Mechanism and providing exceptional macro-financial assistance to Ukraine, OJ L, 2024/2773,

28.10.2024.

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under the EU’s ERA MFA and Ukraine Facility. Inflation accelerated during early 2025

amid energy disruptions, food price pressures and strong wage growth, but has since eased

considerably, reaching 7.4% in January 2026. This was partly the result of the National

Bank of Ukraine’s tight monetary stance throughout 2025, which was relaxed only recently

with the key policy rate lowered to 15% in January 2026. The external position remains

fragile, with the current account deficit still sizeable at an estimated 14.5% of GDP in

2025, reflecting high import demand related to defence needs, energy and reconstruction,

and the gradual reduction of grant financing. Public finances remain under intense

pressure, with the state budget deficit standing at 19.5% of GDP, reflecting sustained

wartime spending and reconstruction needs, despite new tax measures that aim to

strengthen revenues. The banking sector has so far remained stable and well capitalised,

supported by prudent regulation and strong liquidity, despite the extremely challenging

operating environment. Looking ahead, economic prospects remain highly uncertain and

are constrained by the continued destruction of energy and productive infrastructure,

labour shortages, and the unpredictable course of the war. Against this background,

sustained and predictable international financial support remains essential to preserve

macroeconomic stability and enable Ukraine to continue resisting Russia’s war of

aggression.

Following successive MFA operations, which had disbursed a total of EUR 25.2 billion

from the start of Russia’s full-scale war of aggression until end 2023, the war continued to

place significant pressure on Ukraine’s public finances. As a result, additional financing

was required in 2025 to address the country’s financing gap.

Against this background, at their June 2024 summit in Apulia, Italy, G7 leaders committed

to provide Ukraine with EUR 45 billion in ERA loans, to be repaid using future

extraordinary revenues generated by immobilised Russian sovereign assets held in the EU

and other relevant jurisdictions. Building on this commitment, the European Parliament

and the Council adopted Regulation (EU) 2024/2773 on 24 October 2024, which entered

into force on 29 October 2024. Following confirmation of G7 partners’ contributions at

the G7 Finance Ministers’ meeting of 25 October 2024, the EU confirmed an MFA loan

of EUR 18.1 billion to Ukraine, to be disbursed in a single instalment. The Commission

adopted the Decision authorising the release of the sole instalment on 18 December 2024,

following its assessment that the policy conditions attached to the instalment had been

fulfilled6. These conditions covered key reform areas, including macro-financial stability,

state-owned enterprises, public administration, energy, the rule of law and anti-corruption,

and defence. They were designed as interim steps towards the implementation of broader

measures under the Ukraine Plan.

The full MFA amount was disbursed in 2025 in tranches, with an initial disbursement of

EUR 3 billion in January. No disbursement was made in February due to this partial front-

loading. Thereafter, disbursements followed a stable schedule, with tranches of

EUR 1 billion extended between March and September 2025. As frontline hostilities

intensified, Ukraine’s military financing needs in Q4-2025 exceeded earlier estimates. The

flexibility embedded in the disbursement schedule enabled a tranche of EUR 6.1 billion,

6 The ERA MFA loan was guaranteed by the EU budget headroom. Given the headroom availability period, for the loan

to benefit from this guarantee the release decision for the sole instalment had to be adopted by 24 December 2024.

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originally planned for December 2025, to be frontloaded and top up the regular October

and November 2025 disbursements. Consequently, disbursements amounted to

EUR 4 billion in October 2025 and EUR 4.1 billion in November 2025.

The political precondition continued to be assessed positively throughout the year, based

on ongoing evaluations by the Commission services and the European External Action

Service. However, developments in July 2025 affecting the institutional framework

governing the independence of anti-corruption bodies – notably the National Anti-

Corruption Bureau of Ukraine (NABU) and the Specialised Anti-Corruption Prosecutor’s

Office (SAPO) – raised concerns; they were perceived as a potential significant step

backwards in safeguarding the autonomy of key anti-corruption institutions. The

Commission engaged closely with the Ukrainian authorities to reverse the situation, restore

the independence of NABU and SAPO, and ensure that any risks to institutional

independence were adequately addressed ahead of any disbursement under the MFA (with

the payment being withheld until the situation was resolved).

In parallel, Ukraine successfully completed several reviews under the IMF’s 2023

Extended Fund Facility arrangement, underscoring its continued commitment to advancing

reforms despite exceptionally challenging circumstances.

2.2 Southern Neighbourhood

• Egypt

Egypt experienced challenging macroeconomic conditions at the beginning of the current

decade amid multiple external shocks, such as the COVID-19 pandemic, the war in Gaza

and the attacks on ships in the Red Sea. Slow progress on economic reforms created

uncertainty and deterred foreign investment. Egypt’s real GDP growth reached 4.4% in

the fiscal year from July 2024 to June 2025 (FY 2024-25) and accelerated further to 5.3%

year-on-year in H2-2025. With advances in the management of macroeconomic policies,

the impact of the liberalisation of the exchange rate in 2024 and some improvements in the

business environment, the situation started to improve. Growth was primarily driven by

private consumption and private investment, while public investment diminished. The

contribution of net exports of goods and services remained negative. The unemployment

rate decreased to 6.2% in Q4-2025, from 6.4% a year before. Inflation has stabilised at

around 12% in H2-2025, down from 28.5% in 2024. The general government deficit stood

at 7.2% of GDP in FY 2024/25, with interest payments on government debt surpassing

10% of GDP. Public debt declined to 84% of GDP. The current account deficit narrowed

to 4.2% of GDP in FY 2024-25, with increased remittances from work abroad and receipts

from tourism partially offsetting the widening merchandise trade deficit. Foreign direct

investment amounted to 3.3% of GDP in FY 2024-25. The central bank’s net foreign

currency reserves reached USD 53 billion at the end of April 2026, equivalent to six

months’ goods and services imports, an increase compared with the USD 48.1 billion

registered a year before. However, given its dependence on imported oil and gas, tourism

and remittances the country remains vulnerable to external shocks, such as the recent

Middle East conflict, even if the reform efforts undertaken make Egypt better prepared

than in the previous energy crisis.

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In March 2024, the EU and Egypt concluded a strategic and comprehensive partnership

for shared prosperity, stability and security, underpinned by a financial package of up to

EUR 7.4 billion in short- and longer-term support. Given Egypt’s difficult economic and

financial situation and its role as an important stabilising factor in an increasingly volatile

region, the Commission proposed to support Egypt with two MFA operations of up to

EUR 5 billion, divided into (i) a short-term MFA operation of EUR 1 billion, and (ii) a

regular MFA operation of up to EUR 4 billion. The short-term MFA of EUR 1 billion was

approved by the Council in April 20247 and fully disbursed in a single instalment in

December 2024.

The follow-up operation of EUR 4 billion was approved by the European Parliament and

the Council in June 20258. The Memorandum of Understanding (MoU), which was subject

to the opinion of the Member States committee, was signed in July 2025. The first

instalment of EUR 1 billion was disbursed in January 2026 following a positive

assessment of the implementation of the 13 policy measures linked to the first instalment

(focusing on strengthening public finances, improving social protection and labour market

policies, enhancing competitiveness and the business environment, and supporting the

green transition), progress on the implementation by Egypt of the concrete and credible

steps required under the political precondition, and the IMF programme remaining on

track. The second and third MFA instalments, amounting to EUR 1.5 billion each, are also

planned to be disbursed in 2026, subject to a positive assessment of the conditions.

The fourth review of the IMF’s USD 8 billion Extended Fund Facility was concluded by

the Executive Board in March 2025. Owing to delays in policy implementation, the fifth

review was merged with the sixth review and took place in December 2025. It was

approved by the IMF Executive Board in February 2026. The IMF programme is set to

expire in December 2026.

• Jordan

Jordan’s economy and outlook continue to be weighed down by persistent regional

uncertainties, despite broadly resilient macroeconomic performance. Jordan’s real GDP

growth accelerated to 2.7% in Q1-Q3-2025, from 2.4% in the same period of 2024. Growth

in 2025 was broad-based, reflecting continued improvement in agriculture,

manufacturing, and transport services, while mining contracted slightly. Disruptions to

air travel linked to heightened regional tensions over the summer were short-lived and

appear to have had limited repercussions on tourism and trade. Average inflation stood at

1.8% in 2025. In September 2025, the Central Bank of Jordan (CBJ) cut its policy rate by

25 basis points (bps) to 6.25%, its first reduction since December 2024, broadly aligning

with US monetary easing given the dinar’s peg to the US dollar.

The current account deficit narrowed to 7.4% of GDP in H1-2025, from 8.3% of GDP a

year earlier. This improvement was driven by stronger exports of goods and services,

which more than offset import growth. Trade in goods recorded a deficit of 25.7% of GDP,

which was partly cushioned by robust tourism receipts. Foreign direct investment

7 Council Decision (EU) 2024/1144 of 12 April 2024 providing short-term macro-financial assistance to the Arab

Republic of Egypt, OJ L, 2024/1144, 15.4.2024. 8 Decision (EU) 2025/1267 of the European Parliament and of the Council of 24 June 2025 providing macro-financial

assistance to the Arab Republic of Egypt, OJ L, 2025/1267, 27.6.2025.

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increased to 4.0% of GDP in H1-2025 (compared to 3.1% of GDP in 2024). The CBJ’s

gross foreign reserves remained high, amounting to USD 24.6 billion at the end of

November 2025, which covers around 8.8 months of goods and services imports. The

overall central government deficit is projected to narrow from around 5.3% of GDP in

2025 to around 4.8% of GDP in 2026 (4.3% of GDP in 2027), reflecting expected

continued revenue mobilisation and expenditure discipline. Public and publicly

guaranteed debt remained elevated at 108.6% of GDP at the end of 2025 (83.4% of GDP

net of Social Security Corporation’s holdings), with 42.2% of GDP external debt. In 2025,

credit rating agencies have maintained Jordan’s sovereign credit rating at speculative

grade.

The outbreak of the war in Gaza in October 2023 generated significant spillovers,

increasing pressure on Jordan’s security and testing its economic resilience. Against this

background, the Jordanian authorities requested a new MFA operation in October 2023.

The co-legislators approved the ‘MFA IV’ operation in April 2025 for EUR 500 million in

loans9, and a first disbursement of EUR 250 million followed in September 2025. This first

disbursement was conditional on fulfilment of the preconditions, i.e. the political

precondition and a satisfactory track record under the IMF programme. The operation was

front-loaded in order to help Jordan meet urgent external financing needs amid heightened

regional instability, while partly compensating for the unusually long delay between the

October 2023 request and the April 2025 adoption. Part of this delay was linked to the

2024 European Parliament elections and the subsequent constituent process.

The remaining instalments of EUR 150 million and EUR 100 million are scheduled for

2026 and 2027, subject to fulfilment of the preconditions and the policy conditions agreed

in the MoU, which focus on strengthening public finances, enhancing governance and anti-

corruption, improving social protection and labour market policies, and supporting the

green transition and a more dynamic business environment.

Jordan’s close relationship with the IMF is anchored in a four-year Extended Fund Facility

arrangement approved in January 2024 with total access equivalent to around

USD 1.3 billion, and a Resilience and Sustainability Facility arrangement approved in

June 2025, with access equivalent to around USD 700 million. The most recent review

under the two facilities took place in April 2026, when the IMF reached a staff-level

agreement with the authorities; it highlighted the strong programme performance despite

an increasingly challenging external environment resulting from the latest war in the

Middle East. The IMF assessed Jordan’s fiscal performance as remaining in line with

programme targets, supported by robust revenue collection and disciplined current

spending. The authorities are committed to sustaining a gradual fiscal consolidation to set

the public debt ratio on a downward path, anchored in the Medium-Term Revenue Strategy

and improvements in public utility finances, while preserving space for essential social and

public investment spending.

Given a challenging economic situation and sizeable unmet financing needs, Jordan

requested an additional EUR 500 million ‘MFA V’ operation in January 2025. The request

9 Decision (EU) 2025/793 of the European Parliament and of the Council of 14 April 2025 providing macro-financial

assistance to the Hashemite Kingdom of Jordan, OJ L, 2025/793, 22.4.2025.

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pointed to a deteriorating economic and political environment, with regional turmoil

intensifying throughout 2024 against an already uncertain global backdrop. The co-

legislators approved the new operation in January 202610, with disbursements planned over

2026-2027 in parallel with MFA IV. Negotiations on the MoU are ongoing. Both MFA IV

and V are part of the broad framework of the EU-Jordan Strategic and Comprehensive

Partnership initiated in January 2025.

2.3 Western Balkans

• North Macedonia

GDP growth accelerated from 3% in 2024 to 3.5% in 2025, largely driven by investment

as works on public road projects gathered pace. Private investment also increased,

supported by government-subsidised loans. Household consumption growth remained at

the same level as one year earlier (2.2% year-on-year), underpinned by rising real

disposable incomes due to increases in pensions and wages amid temporarily easing

inflation, as well as by robust credit expansion. A further contribution to growth came

from public consumption (+5.3%), mainly reflecting strong public-sector wage increases.

Exports recovered in 2025 (+6.1%), after declining, in real terms, in 2024. However, with

investment and export production depending heavily on imported inputs, the annual

increase in imports was more substantial (+6.8%). Overall, the contribution of net exports

to GDP growth remained negative. Average annual consumer price inflation accelerated

to 4.1% in 2025, from 3.5% in 2024, driven by food prices despite the government’s

temporary price controls, and on the domestic front by rising wage costs, which impacted

services. The central bank maintained a cautious policy stance, raising reserve

requirements and bolstering its macroprudential instruments. In December 2025, it

adjusted its monetary policy framework to improve liquidity management and policy

transmission. The current account deficit widened in 2025 by 2.1 percentage points year-

on-year to 4.3% of GDP, mainly due to a lower surplus in the secondary income balance

and in the services balance. Net foreign direct investment inflows decreased from an

exceptionally high level in 2024 (6.6%) to 2.2% of GDP in 2025, as a result of large

outflows of intercompany lending rather than a decline in greenfield investments. Fiscal

policy remained expansionary. The general government deficit declined by 0.5 percentage

points in annual terms to 4% of GDP in 2025, as targeted by the government. A mid-year

budget rebalancing cut capital expenditure to fund new spending commitments, in

particular for public-sector wages and pensions. At the end of 2025, North Macedonia’s

public debt level was some 10 percentage points above its pre-pandemic level (2019),

amounting to 59.6% of GDP, with general government debt having risen by

11.3 percentage points to 51.8% in this period.

In February 2023, the Commission adopted a proposal to provide MFA to North

Macedonia of up to EUR 100 million in loans, to be disbursed in two equal instalments.

10 Decision (EU) 2026/188 of the European Parliament and of the Council of 20 January 2026 providing macro-financial

assistance to the Hashemite Kingdom of Jordan, OJ L, 2026/188, 23.1.2026.

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The co-legislators approved the operation in July 202311, and the Commission and the

North Macedonian authorities signed the MoU in January 2024. The MoU contains 20

policy conditions (eight of which relate to the first instalment) in the following areas:

public finance, business environment, education and labour market, energy, judiciary,

good governance and the fight against corruption. The Commission disbursed the first

instalment of EUR 50 million in April 2024, after assessing that all related conditions were

met.

To date, the second instalment of EUR 50 million has not been disbursed as the authorities

have not requested the funds, and have therefore not submitted a compliance statement for

the implementation of the policy reforms attached to it. Following the expiry of the

Precautionary and Liquidity Line arrangement with the IMF in November 2024, North

Macedonia has not agreed on a new disbursing programme with the IMF, which is among

the preconditions for the release of an MFA instalment. The availability period of the MFA

operation ends in August 2026.

3. ENSURING PROPER USE OF MFA FUNDS: OPERATIONAL

ASSESSMENTS AND EX POST EVALUATIONS

3.1 Operational assessments

In line with the requirements of Regulation (EU, Euratom) 2024/250912 (the ‘Financial

Regulation’), the Commission carries out operational assessments with the help of external

consultants to obtain reasonable assurances on the functioning of administrative

procedures and financial circuits in beneficiary countries.

Operational assessments examine public financial management (PFM) systems, in

particular the institutional set-up and procedures of ministries of finance and central banks,

and more specifically the management of accounts receiving EU financial assistance.

Special attention is also paid to the functioning, independence and work programmes of

external audit institutions, and to the effectiveness of their controls. In addition, central-

level public procurement procedures are reviewed.

An operational assessment of Ukraine’s administrative and financial circuits was carried

out in 2022, preceding the exceptional MFA support (2022), the MFA+ (2023), and the

ERA MFA (2024-2025). It concluded that considerable progress had been made in

strengthening PFM systems and other financial circuits since the previous assessment in

2018. It also highlighted the Ukrainian authorities’ ongoing commitment to continuous

improvement. The assessment emphasised prioritising PFM reforms in key areas and

recommended further action once security improves, given the significant reconstruction

efforts ahead.

11 Decision (EU) 2023/1461 of the European Parliament and of the Council of 12 July 2023 providing macro-financial

assistance to the Republic of North Macedonia, OJ L 180, 17.7.2023, p. 1.

12 Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the

financial rules applicable to the general budget of the Union, OJ L, 2024/2509, 26.9.2024.

10

In early 2026, in view of the expected launch of a new MFA operation for Ukraine, the

Commission initiated a new operational assessment of the country’s administrative and

financial circuits. The assessment concluded that Ukraine’s PFM systems and other

financial circuits had improved considerably since the assessment in 2022. On the one

hand, it praised the government’s sustained focus and commitment despite the protracted

war and deteriorating conditions in the country, and noted ample evidence to suggest that

several reforms to improve crucial regulatory issues, systems and processes have been

implemented or are ongoing. On the other hand, the assessment highlighted that many of

the regulatory reforms would need to be tested in practice and stressed that several critical

areas would require the authorities’ attention once normality was restored in Ukraine.

In 2023, an operational assessment of North Macedonia was carried out ahead of the MFA

operation. The assessment found that the country’s financial circuits and procedures were

satisfactory and deemed the PFM systems generally sound, noting significant recent

progress.

As regards Egypt and Jordan, operational assessments were carried out in 2024 in

preparation for their respective MFA operations. In Egypt, the assessment established that

the authorities had made significant progress, including introducing new legislation

governing PFM and banking operations, and concluded that the PFM framework and

financial circuits were adequate for MFA, if reform momentum was maintained.

The operational assessment for Jordan was the second since 2020 and confirmed progress

in improving PFM systems and public spending efficiency. However, it also identified

some challenges, such as limited independence and transparency of the Audit Bureau,

underutilisation of the Procurement Complaints Review Committee, and a shallow

secondary market for government securities. Despite these issues, the assessment

concluded that Jordan’s administrative and financial circuits provided a strong foundation

for the implementation of MFA operations. Some of the identified weaknesses were

reflected in the policy conditionality of the respective operations13.

3.2 Evaluations

In line with the Financial Regulation and the respective MFA decisions, the Commission

systematically carries out ex post evaluations after the completion of MFA operations. The

purpose of these evaluations is to analyse the impact of MFA on the beneficiary country’s

economy, in particular the sustainability of its external position, and to assess the added

value of the EU’s intervention.

In January 2025, the Commission published the joint ex post evaluation of MFA operations

in three Eastern Neighbourhood countries (Moldova, Georgia and Ukraine) between 2017

and 2020. For all three countries, the evaluation concluded that the operations had a

positive impact on debt sustainability and on the country’s macroeconomic stabilisation.

This was particularly significant for Ukraine, given the larger scale of the operation and

the country’s challenging economic situation. The evaluation also concluded that the three

13 For Jordan’s MFA IV MoU, the operational assessment helped shape several measures, including: (i) requiring an

annual procurement report to summarise procurement-related complaints and dispute-resolution outcomes; (ii)

strengthening the Audit Bureau’s independence by gradually withdrawing from ex ante audit activities in internal control

units; and (iii) significantly expanding the scope of the Audit Bureau’s annual report, starting with the edition covering

2025 activities.

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operations successfully fostered positive change in several key reform areas, including

governance and anti-corruption, and that they were consistent with the broader EU policy

framework, aligning with the authorities’ reform agendas and other donors’ programmes.

In December 2025, the Commission published the ex post evaluation of the COVID-19

MFA operations for 10 partner countries (2020-2022). The evaluation assessed the

EUR 3 billion MFA package provided in 2020 to partners across the Eastern

Neighbourhood, Western Balkans and Southern Neighbourhood regions to mitigate the

economic impact of the COVID-19 pandemic. The evaluation concluded that the package

was a timely, well-targeted and highly relevant response to the unprecedented economic

shock triggered by the COVID-19 pandemic. The instrument was capable of providing a

rapid and effective response to a systemic external shock affecting multiple countries

simultaneously without compromising the quality of MFA intervention, progress on the

reforms to improve macroeconomic management, or economic governance and

transparency. It also fostered sustainable growth and related policy conditionality.

In 2025, the Commission launched an ex post evaluation of the four MFA operations

provided to Ukraine from 2022 to 2023 as a sizeable contribution to the financing of the

country’s immediate funding needs in the face of Russia’s war of aggression (Emergency

MFA, Exceptional MFA I and II, and MFA+, of EUR 1.2, 6 and 18 billion respectively).

The evaluation will consider the exceptional context of a country defending itself against

a war of aggression and the urgency of the financing needs, as well as the resulting design

specificities of the operations.

4. GENERAL DEVELOPMENTS RELATED TO THE MFA INSTRUMENT

4.1 Functioning of the MFA instrument

The 2013 Joint Declaration of the European Parliament and of the Council on MFA14

frames the assistance as macroeconomic and financial in nature and states that its aim is

‘to restore a sustainable external finance situation for eligible countries and territories

facing external financing difficulties’. As an emergency instrument, MFA must therefore

be mobilised effectively and in a timely manner. Decision-making involving the ordinary

legislative procedure has often been identified as fairly time-consuming, which constitutes

a significant constraint for a crisis tool intended to provide a swift response to a balance-

of-payments crisis.

However, in exceptional circumstances related to the COVID-19 crisis and Russia’s war

of aggression against Ukraine, the relevant MFA packages were adopted rapidly, as all

institutions made full use of available procedural flexibilities. In these cases, the European

Parliament and the Council agreed to apply existing urgency procedures, enabling adoption

within one month of the Commission’s proposals. The European Parliament invoked

Rule 163 of its Rules of Procedure to swiftly proceed with the legislative proposal and

adopt it directly in plenary, streamlining the consultation of committees.

14 Decision No 778/2013/EU of the European Parliament and the Council of 12 August 2013 providing further macro-

financial assistance to Georgia, OJ L 218, 14.8.2013, p. 15.

12

The Rules of Procedure of both the European Parliament and the Council provide for

urgency procedures enabling swift adoption in exceptional cases. The standard procedure

is considerably lengthier, as illustrated by the Commission’s ‘MFA IV’ proposal for

Jordan, proposed by the Commission in April 2024 and adopted by the co-legislators in

April 2025. This timeframe was partly the result of the June 2024 European Parliament

elections and the subsequent reconstitution of its committees. By contrast, the ‘MFA V’

for Jordan was adopted much more quickly, with the Commission’s proposal in

August 2025 and approval by the co-legislators in January 2026. In Egypt’s case, the

urgent need to deliver support in the second half of 2024 led the Commission to

exceptionally propose in March 2024 a first urgent short-term MFA operation under

Article 213 TFEU (applicable in cases where urgent financial assistance is needed, and

requiring adoption by the Council only). However, the Commission proposed to provide

the bulk of the support via a second and more medium-term MFA operation following the

normal procedure under Article 212 TFEU (involving both co-legislators).

In this regard, it is important to note that the simplified procedure for the adoption of a

European Parliament decision has been amended. In contrast to the urgent procedure, the

simplified procedure does not require a request from the President to treat the proposal as

urgent and streamlines the adoption process by requiring fewer steps for approval than the

standard procedure. This procedure has not yet been used for ongoing MFAs, but could fit

well with the emergency nature of MFA; it is a welcome step towards potentially

increasing the effectiveness of regular operations.

4.2 MFA in the 2021-2027 multiannual financial framework

The current multiannual financial framework (MFF) period has been characterised by

multiple crises, extremely high geopolitical tensions and uncertainty that have hit the EU’s

partner countries and exacerbated their structural economic vulnerabilities. In

chronological order these include the economic consequences of the COVID-19 pandemic,

Russia’s war of aggression against Ukraine and, more recently, the escalating conflicts in

the Middle East. Against this background, MFA has been in high demand in recent years,

proving to be a major pillar of the EU’s response to address macroeconomic instability in

its neighbourhood (including candidate countries), complementing the EU’s external

policies and helping partner countries implement critical reforms. Given the continued

challenging global outlook, the need for the EU to provide MFA is likely to remain high

in the years to come.

MFA loans are guaranteed by the External Action Guarantee under Regulation

(EU) 2021/94715 (the ‘NDICI_GE Regulation’) at a provisioning rate of 9% at portfolio

level, as was the case for previous MFFs. Recognising the exceptional situation of lending

to a country at war, initially without the backing of a disbursing IMF programme,

provisioning to Ukraine has been set at 70%, starting with the exceptional MFA in 2022.

The total budget initially earmarked for the provisioning of MFA loans was fixed at around

EUR 1 billion in the current MFF, which translates into a loan volume of EUR 11 billion.

15 Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the

Neighbourhood, Development and International Cooperation Instrument – Global Europe ; OJ L 209, 14.6.2021, pp. 1–

78

13

Given the EU’s sizeable support to Ukraine via MFA in 2022, its higher provisioning rate,

and increasing tensions in the Middle East, more than two thirds of the earmarked

provisioning had been used by the end of 2023. In the context of the MFF mid-term

revision, it was decided to reinforce the budget for the provisioning of MFA loans by

EUR 180 million. This enabled the mobilisation of sufficient resources to fund a short-

term MFA to Egypt of up to EUR 1 billion, and a regular MFA operation for Egypt of up

to EUR 4 billion, adopted in April 2025 by the co-legislators, while leaving some room for

other MFA operations until the end of 2027 (see Section 5 for a list of MFA operations

funded from 2021 to 2027).

As crises are unpredictable by nature, it is essential to keep a sufficiently large budget for

potential future MFA operations in the two remaining years of this MFF (2026-2027). The

budget available at the reporting date could cover up to EUR 2.2 billion of loans at the

standard 9% provisioning rate. Loans granted to Ukraine as part of the MFA+ programme,

and the ERA MFA loan (EUR 18 billion and EUR 18.1 billion respectively) are backed by

the headroom under the own resources ceiling and not provisioned ex ante. They are

backstopped by the possibility of calling on additional own resources from Member States

after having exhausted all other possibilities within the existing budgetary framework. In

the case of the ERA MFA operation, loan repayments (including interest and any other

costs related to the loan) from the extraordinary revenues arising from the immobilised

Russian central bank assets provide significant financial backing.

4.3 MFA as proposed in the next multiannual financial framework 2028-2034

Commission’s proposal

The Commission presented its proposals for the next Multiannual Financial Framework

(MFF) on 16 July and 3 September 2025, including the one for Global Europe 16, the main

financing instrument for external action. With a proposed budget of EUR 200 billion, the

objective of Global Europe is to support EU enlargement, neighbourhood, international

partnerships and humanitarian aid. In addition, to underpin the EU’s unwavering support

for Ukraine, additional EUR 100 billion may be mobilised for Ukraine over 2028-2034.

Global Europe includes expanded use of financial instruments, budgetary guarantees and

loans backed by the EU budget to increase leverage in financing actions in partner

countries. On the basis of the proposal, the provisioning for MFA loans would be sourced

from Global Europe budget, although the governance of MFA operations would remain

specific, as is currently the case under the NDICI Regulation. This would preserve the

current interinstitutional balance on decision-making for MFA, in line with the 2013 Joint

Declaration by the European Parliament and the Council. MFA would remain available

alongside the proposed policy-based loans as a complementary instrument within the

external financing toolbox, enabling the EU to continue responding to balance-of-

payments crises in partner countries, hand in hand with the IMF.

Negotiations on the next MFF have started, and the European Parliament and the Council

are establishing their positions.

16 Proposal for a Regulation of the European Parliament and of the Council establishing Global Europe, COM/2025/551

final

14

5 LOOKING AHEAD – MFA OPERATIONS AND THE BUDGETARY SITUATION IN 2026

Considering the non-programmable, crisis-driven nature of MFA, it is difficult to provide

an accurate prediction of future operations for the remainder of the current MFF. This

section therefore focuses on operations already approved in 2026 and points to potential

future operations, highlighting the rapidly changing geopolitical environment.

In the Eastern Neighbourhood, Russia’s war of aggression against Ukraine continues to

have a significant economic impact on the region. Ukraine and Moldova are most exposed.

Both countries remain reliant on substantial international aid, with the EU playing a key

role in this respect.

In view of Russia’s continued war of aggression and the resulting significant and persistent

financing and defence needs faced by Ukraine, EU leaders agreed on 18 December 202517

to provide a new limited-recourse support loan of EUR 90 billion for 2026-2027, financed

through EU borrowing on capital markets, backed by the EU headroom. The loan will be

repayable only once reparations are received by Ukraine, while mobilisation of the EU

budget guarantee under enhanced cooperation ensures that the financial obligations of non-

participating Member States (Czechia, Hungary and Slovakia) remain unaffected.

Building on this political agreement, on 14 January 2026 the Commission adopted a

legislative package comprising a proposal establishing the Ukraine Support Loan (USL)

and amendments to the Multiannual Financial Framework Regulation and the Ukraine

Facility Regulation. The co-legislators adopted the USL package between February and

April 202618. The new support framework will deliver substantial budgetary assistance of

about one third of the USL through a combination of instruments, including MFA and

funding channelled via the Ukraine Facility and via the defence leg of the USL.

The MFA component will focus on conditions strengthening domestic revenue

mobilisation as well as the sustainability and quality of public expenditure. It will seek

complementarity with the new IMF programme and will try to address the root causes of

corruption in public finances. Beyond MFA, the EU’s EUR 50 billion Ukraine Facility

(2024-2027), which aims to support key structural reforms in Ukraine’s path to EU

accession, will be topped up via the USL.

In addition, Moldova’s Growth Plan of up to EUR 1.9 billion in 2025 to 2027 aims to

support the country’s economic convergence with the EU and help bring the country closer

to EU membership by accelerating reforms and improving Moldova’s access to the EU’s

single market.

In the Southern Neighbourhood, in November 2022 Tunisia requested MFA of

EUR 1.2 billion to support its financing needs against the background of the worsened

global environment and high international commodity prices. This followed a staff-level

17 European Council conclusions, 18 December 2025. 18 Regulation (EU) 2026/467 of the European Parliament and of the Council of 24 February 2026 implementing enhanced

cooperation on the establishment of the Ukraine Support Loan for 2026 and 2027, OJ L, 2026/467, 26.2.2026; Regulation

(EU) 2026/468 of the European Parliament and of the Council of 24 February 2026 amending Regulation (EU) 2024/792

establishing the Ukraine Facility, OJ L, 2026/468, 26.2.2026; Council Regulation (EU) 2026/469 of 23 April 2026

amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to

2027, OJ L, 2026/469, 23.4.2026.

15

agreement reached with the IMF in October 2022 for a new Extended Fund Facility (four

years, USD 1.9 billion). However, the IMF Board did not adopt the programme owing to

Tunisia’s inability to implement prior actions, notably a fuel subsidy reform. After the

Tunisian President voiced his opposition to an IMF programme in March 2023, contact

with the IMF was reduced to a minimum, with Article IV surveillance also discontinued.

In the meantime, buoyant tourism and steady remittances have temporarily eased the

external financing pressure on Tunisia. Subject to a careful assessment of MFA

preconditions and Tunisia’s external financing needs, the Commission stands ready to

prepare a proposal for a new MFA once an IMF programme is in place confirming the

country’s willingness to address the root causes of its external financing pressures. This

was also confirmed as part of the comprehensive partnership between the EU and Tunisia

agreed in July 2023; however, it was noted that substantial and forceful implementation of

additional reforms would be required.

In April 2022, Lebanon reached a staff-level agreement with the IMF (four years,

USD 3 billion), but so far, it has made only limited progress on its long list of prior actions.

GDP has since continued to shrink, while many public institutions have stopped

functioning and the currency has dramatically lost value, leading to broad-based

dollarisation of the Lebanese economy. In January 2025, the Lebanese Parliament elected

a president, and a new prime minister was appointed a few days later, ending more than

five years of political deadlock and creating the conditions for a new push for reforms and

re-engagement with the IMF. In March 2025, the new government officially requested a

new IMF programme, a potential positive step in addressing the economic crisis through

international assistance and comprehensive reforms. Since then, the government has made

some progress on crucial reforms, including by adopting legislation that would partially

resolve the banking sector crisis. Such reforms are a precondition for a new IMF

programme. However, as of April 2026, key laws had either not yet been adopted by the

parliament or needed to be reopened as IMF core demands had not been fully met. While

the postponement by two years of the next elections may be conducive to further progress

on these laws, the recent resurgence of conflicts in the country and the region represents

an additional challenge for economic reforms. The Commission stands ready to support a

comprehensive reform agenda with an MFA operation once the preconditions (including

an updated on-track disbursing IMF programme) are fulfilled.

The Commission stands ready to consider future requests for MFA and will, if appropriate,

propose new and/or follow-up MFA operations to eligible partners.

Table 1 provides an overview of commitments and payments of MFA grants and the

disbursement of MFA loans for 2023, 2024, 2025 and (tentatively) 2026.

16

Table 1: Commitments and payments for MFA grants and disbursements of MFA

loans 2023-2026 (EUR)19

2023 2024 2025 2026

Commitment appropriations for grants in

the budget 45 423 330 57 367 177 59 267 773 61 511 946

Operational assessments, ex post evaluations 350 000 619 440 331 775 750 000

Other possible MFA operations 45 073 330 56 747 737 58 935 998 60 761 946

Commitments, total 45 423 330 57 367 177 59 267 773 -

Payment appropriations for grants in the

budget 39 880 000 57 367 177 59 267 773 61 511 946

Operational assessments, ex post evaluations 329 765 749 270 331 775 750 000

MFA Moldova (Decision (EU) 2022/563)

(completed) 10 000 000 5 000 000 - -

MFA Moldova (top-up) (Decision (EU) 2023/1165) (completed)

22 500 000 22 500 000 - -

Other possible MFA operations - - - 60 761 946

Payments, total 32 829 765 28 249 270 331 775 61 511 946

Unused allocations for grants payments 7 050 235 29 117 907 58 935 998 -

Disbursements of MFA loans - - -

MFA Jordan III (completed) 200 000 000 - - -

MFA Moldova (completed) 40 000 000 45 000 000 - -

Emergency MFA Ukraine (completed) - - - -

Exceptional MFA Ukraine (completed) - - - -

MFA Moldova top-up (completed) 50 000 000 50 000 000 - -

MFA+ Ukraine (completed) 18 000 000 000 - - -

MFA North Macedonia - 50 000 000 - -

MFA Egypt short-term (completed) - 1 000 000 000 - -

MFA Egypt – regular - - - 1 000 000 000

MFA ERA Ukraine (completed) - - 18 115 700 000 -

MFA Jordan IV - - 250 000 000

Disbursements of all MFA loans, total 18 290 000 000 1 145 000 000 18 365 700 000 1 000 000 000

19 This table does not take into account any proposal for new MFA operations after December 2025.

EN EN

EUROPEAN COMMISSION

Brussels, 23.6.2026

SWD(2026) 160 final

COMMISSION STAFF WORKING DOCUMENT

Backgroud analysis per beneficiary country

Accompanying the document

REPORT FROM THE COMISSION TO THE EUROPEAN PARLIAENT AND THE

COUNCIL

on the implementation of macro-financial assistance to third countries in 2025

{COM(2026) 294 final}

1

LIST OF ABBREVIATIONS

AML Anti-money laundering

CFT Counter-financing terrorism

ECF Extended Credit Facility

EFF Extended Fund Facility

EU European Union

EUR Euro

ERA Extraordinary revenue acceleration

GANHRI Global alliance of national human rights institutions

IMF International Monetary Fund

MFA Macro-financial assistance

MFF Multiannual financial framework

MoU Memorandum of understanding

NABU National Anti-Corruption Bureau of Ukraine

NCHR National Council for Human Rights

OECD Organisation for Economic Cooperation and Development

OJ Official Journal of the European Union

PFM Public finance management

PLL Precautionary and Liquidity Line

PIM Public investment management

PPP Public-private partnership

SAPO Specialised Anti-Corruption Prosecutor’s Office

SCPC State Commission for Prevention of Corruption

SOE State-owned enterprise

SWD Staff working document

TFEU Treaty on the Functioning of the European Union

ULCM Ukraine Loan Cooperation Mechanism

2

Contents

Introduction .................................................................................................................................................. 4

Background analysis of beneficiaries of macro-financial assistance ........................................................ 5

1. Ukraine .................................................................................................................................................. 5

1.1 Implementation of macro-financial assistance ................................................................................. 5 1.1.1 Recent macro-financial assistance operations .............................................................................. 5 Box 1. Summary of recent past MFA operations to Ukraine ................................................................. 6 1.1.2 Policy conditionality ..................................................................................................................... 7

2. Egypt ................................................................................................................................................... 10

2.1 Implementation of macro-financial assistance ............................................................................... 10 2.1.1 Recent macro-financial assistance operations ............................................................................ 10 Box 2. Summary of the previous MFA operation to Egypt ................................................................... 10 2.1.2 Policy conditionality ................................................................................................................... 11 2.1.3 Political precondition ................................................................................................................. 12

3. Jordan ................................................................................................................................................. 15

3.1 Implementation of macro-financial assistance ........................................................................... 15 3.1.1 Recent macro-financial assistance operation ............................................................................ 15 Box 3. Summary of past MFA operations in Jordan ............................................................................ 16 3.1.2 Policy conditionality ................................................................................................................... 17

4. North Macedonia ................................................................................................................................ 18

4.1 Implementation of macro-financial assistance ............................................................................... 18 4.1.1 Recent macro-financial assistance operation ............................................................................. 18 Box 4. Summary of recent past MFA operations to North Macedonia ................................................ 19 4.1.2 Policy conditionality ................................................................................................................... 19 Annex 1: MFA operations by date of decision, 1990-2025, amounts in million EUR ......................... 23 Annex 2: Status of disbursements made by date of decision at the end of December 2025 ................. 24 Annex 3: MFA amounts authorised  by year, 2008-2025 (EUR million)  ............................................ 29 Annex 4: MFA amounts disbursed by year, 2008-2025 (EUR million) ............................................... 30 Annex 5: MFA outstanding principal amounts at the end of December 2025, and year of first and last

repayment, by country (EUR million) ...................................................................................... 31

3

INTRODUCTION

This staff working document (SWD) complements the Commission’s report to the European

Parliament and the Council on the implementation of macro-financial assistance (MFA) to

partner countries in 20251. The report covers disbursing operations and MFAs newly adopted

by the European Parliament and the Council up to the end of 2025.

In 2025, the EU continued its substantial financial support to Ukraine with the objective to

finance the country’s immediate financing needs arising from Russia’s ongoing and

unjustified war of aggression and to support its economic resilience. In line with the pledge

made by G7 leaders in mid-2024 to mobilise a further EUR 45 billion in financial support,

the Commission, on behalf of the EU, provided EUR 18.1 billion through a new exceptional

MFA under an Extraordinary Revenue Acceleration initiative (ERA). Disbursed over the

course of 2025, this support was linked to policy conditions aimed at strengthening anti-

corruption efforts, the rule of law, macroeconomic stability, and other structural reforms set

out in the Ukraine Plan. Against the backdrop of Russia’s ongoing acts of aggression and the

resulting significant and persistent financing and defence needs faced by Ukraine, EU leaders

agreed in December 2025 to provide a new limited-recourse support loan of EUR 90 billion

for 2026-2027. Building on this political agreement, in January 2026 the Commission adopted

a legislative package related to the new support framework, which consists of a combination

of instruments, including MFA.

In other partner countries, the EU approved in June 2025 an MFA operation for Egypt of EUR

4 billion in loans to be disbursed in three instalments with the objective to support the

country’s economic stabilisation and substantive reform agenda. In January 2026, the

Commission, on behalf of the EU, made the first instalment of EUR 1 billion under the

operation following the implementation of the economic reforms, progress in relation to the

political precondition and the International Monetary Fund (IMF) programme remaining on

track.

In August 2025, the Commission disbursed the first instalment of EUR 250 million in loans

from the EUR 500 million MFA for Jordan that was approved earlier in the year to promote

the country’s economic stability, sustainable growth, resilience, and reforms. In January 2026,

the Commission adopted a proposal for a new EUR 500 million MFA operation to ease

external financing pressures, reinforce fiscal discipline, and keep momentum behind Jordan’s

structural reform agenda.

There was no further progress with the EUR 100 million MFA operation for North Macedonia

in 2025. After the disbursement of the first instalment of EUR 50 million in 2024, there was

no request for the remaining EUR 50 million. At this stage, the authorities do not meet the

conditions for the disbursement. They do not have a disbursing programme with the IMF.

Furthermore, some of the policy conditions specified in the Memorandum of Understanding

(MoU) related to the MFA are not fulfilled. The operation is set to expire in August 2026.

For each beneficiary country, the report provides more detailed information on: (i) the

implementation of the corresponding MFA operations; and (ii) the underlying policy

conditionality and progress regarding its implementation.

The annexes include: (i) overview tables on the disbursements of MFA operations since 1990,

by date of adoption of the decisions; (ii) tables on MFA commitment and payment amounts

1 This document is based on information available up to April 2026.

4

from 2006 to 2025, by year and by region; and (iii) a table indicating outstanding principal

amounts at the end of 2025 and the years of first and last repayment by country2.

BACKGROUND ANALYSIS OF BENEFICIARIES OF MACRO-FINANCIAL ASSISTANCE

1. UKRAINE

1.1 Implementation of macro-financial assistance

1.1.1 Recent macro-financial assistance operations

Russia’s prolonged war of aggression continued to put pressure on Ukraine’s financing needs.

In this context, in their communication of 14 June 2024, the G7 leaders announced the launch

of the Extraordinary Revenue Acceleration (ERA) loans for Ukraine initiative to make

available approximately EUR 45 billion of additional funding, to be repaid by the

extraordinary revenues from Russia’s immobilised sovereign assets. To this end, on

24 October 2024 the European Parliament and the Council adopted Regulation (EU)

2024/2773 (the Ukraine Loan Cooperation Mechanism (ULCM) Regulation), which entered

into force on 29 October 20243, establishing, among other things, an exceptional MFA for

Ukraine.

The ERA MFA is the EU’s contribution to the G7 ERA loan initiative for an amount of EUR

18.1 billion. The MFA was fully disbursed during 2025, with the last disbursement of EUR

4.1 billion taking place on 13 November 2025.

The political precondition continued to be assessed positively throughout the year, based on

ongoing evaluations by the Commission and the European External Action Service. However,

developments affecting the institutional framework governing the independence of anti-

corruption bodies – notably the National Anti-Corruption Bureau of Ukraine (NABU) and the

Specialised Anti-Corruption Prosecutor’s Office (SAPO) – raised concerns, as they were

perceived as a potential step backward in safeguarding the autonomy of key anti-corruption

institutions. The Commission engaged closely with the Ukrainian authorities to reverse the

situation, restore the independence of NABU and SAPO, and ensure that any risks to

institutional independence were adequately addressed ahead of any disbursement under the

MFA (with the payment being withheld until the situation was resolved).

In parallel, Ukraine successfully completed eight reviews under the IMF programme,

underscoring its continued commitment to advancing reforms despite the country’s

exceptionally challenging circumstances.

This ERA MFA featured highly concessional terms that reflect the exceptional circumstances.

While Ukraine remains formally liable to repay the MFA loan, the repayments are meant to

be financed through the extraordinary revenues generated from immobilised Russian assets

(covering the principal, interest and any other related costs of the loan), with the first

repayment having already taken place on 25 August 2025. Ukraine is, therefore, not expected

to use its own resources to directly repay the loan – repayments will instead be managed via

the ULCM so that Ukraine can frontload the benefits of these extraordinary revenues while

minimising the impact on its public finances. Furthermore, if the extraordinary revenues prove

to be insufficient to repay the MFA loan, the highly concessional 45-year period of maturity

2 The document and its annexes distinguish between authorised amounts (the amounts made available to the beneficiary

country under the MFA decision) and disbursed amounts (the amounts actually paid to the beneficiary country). 3 Regulation (EU) 2024/2773 of the European Parliament and of the Council of 24 October 2024 establishing the Ukraine

Loan Cooperation Mechanism and providing exceptional MFA to Ukraine (OJ L, 2024/2773, 28.10.2024, ELI:

http://data.europa.eu/eli/reg/2024/2773/oj).

5

and a 10-year grace period before principal repayments fall due provide ample room to ensure

the stabilisation of Ukraine’s macroeconomic and fiscal situation.

This MFA (in the same way as the MFA+ instrument and the loan support under the Ukraine

Facility) is backed by a guarantee from the EU budget’s headroom (the gap between the own

resources ceiling and the funds required to cover the expenses provided for by the budget).

This provides a high degree of protection and reassurance to investors and avoids the need to

make provisions for loans or to establish national guarantees. Moreover, it does not require

changes to the size of the EU’s multiannual financial framework (MFF) or its ceilings. The

availability of coverage by the budgetary headroom for financial assistance available in 2024

under Council Regulation (EU, Euratom) 2020/2093 (the MFF Regulation) 4 meant that the

decision on the release of the new MFA loan had to be taken before the end of 2024.

The unique characteristics of the new ERA MFA are due to the exceptional need to provide

unprecedented amounts of loans to a war-torn country. In this respect, the ERA MFA does

not constitute a precedent for any future MFA operations. These will continue to be guided

by the principles set out in the 2013 Joint Declaration, a legally non-binding declaration in

which the European Parliament and the Council set out guiding principles for MFA

operations.

Going forward, and against the backdrop of Russia’s continued war of aggression and the

resulting significant and persistent financing and defence needs faced by Ukraine, EU leaders

agreed on 18 December 2025 to provide a new limited-recourse support loan of EUR 90

billion for 2026-2027, financed through EU borrowing on capital markets. The loan is to be

repaid by Ukraine only in the event that it receives reparations, while the mobilisation of the

EU budget guarantee under enhanced cooperation ensures that the financial obligations of

certain Member States that opt out of the arrangement are not affected. Building on this

political agreement, on 14 January 2026, the Commission adopted a legislative package

comprising a proposal establishing the Ukraine Support Loan, together with amendments to

the MFF Regulation and the Ukraine Facility Regulation. The Ukraine Support Loan entered

into force on 27 February, together with the amended Ukraine Facility Regulation. The

amendment to the MFF Regulation, authorising the use of the headroom to guarantee the

Ukraine Support Loan, was adopted on 23 April, together with the Council Implementing

Decision approving assistance to Ukraine in implementing the Ukrainian Financing Strategy.

Work is now ongoing to ensure timely disbursements in line with Ukraine’s financing and

defence needs. The new support framework is expected to provide substantial budgetary

assistance to Ukraine, combining different instruments, including MFA and support

channelled through the Ukraine Facility.

Box 1. Summary of recent past MFA operations to Ukraine

Since the start of Russia’s full-scale war of aggression, overall support from the EU and

the Member States to Ukraine, and to cater for the needs of Ukrainians fleeing the war,

has reached EUR 200.6 billion as of April 20265. In 2022 alone, Ukraine received

EUR 7.2 billion in MFA from the EU. Emergency MFA loans of EUR 1.2 billion were

disbursed in two tranches in March and May 2022, just weeks after the start of the full-

scale war. Also in 2022, the EU adopted two exceptional MFA operations in loans for

Ukraine of up to EUR 1 billion and an additional one of up to EUR 5 billion; these have

been fully disbursed. To protect the EU as a borrower in the capital markets, the two

exceptional MFA loans benefited from 70% coverage, composed of paid-in provisioning

4 Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for

the years 2021 to 2027 (OJ L 433I, 22.12.2020, p. 11). 5 Factsheet: EU solidarity with Ukraine (europa.eu).

6

of 9% and callable guarantees from Member States of 61%. In addition, the legal acts

governing the exceptional MFA operations included an option to provide a subsidy to

cover the cost of interest on the loans. This would be upon request by the Ukrainian

authorities and would make the loans even more favourable. Given Ukraine’s timely

submission of such a request and the availability of budgetary resources under

Regulation (EU) 2021/947, the Commission confirmed to the Ukrainian Minister of

Finance on 29 June 2023 that an interest rate subsidy would be granted for the charges

due in 2023 and again in 2024. The necessary funds have since been provided through

the Ukraine Facility.

On 9 November 2022, the Commission made a formal proposal for a regulation of the

European Parliament and of the Council establishing an instrument to provide support

to Ukraine in 2023 (MFA+)6. On 14 December 2022, the European Parliament and the

Council adopted Regulation (EU) 2022/2463, which entered into force on 17 December

20227. The MFA+ instrument ensured more predictable, continuous, orderly and timely

financing of EUR 18 billion in highly concessional loans to help Ukraine meet its short-

term funding needs in 2023. Policy conditionality and stringent reporting requirements

(as reflected in the MoU) continued to apply to the disbursements. The full amount of

EUR 18 billion of the MFA+ was disbursed during 2023, with the last payment taking

place in December 2023. The Regulation also allowed for an interest rate subsidy at

Ukraine’s request. The loan was backed by the EU budget’s headroom.

Aside from MFA support, Regulation (EU) 2024/792 of the European Parliament and

of the Council established the Ukraine Facility on 29 February 2024. Between 2024

and 2027, the Facility is expected to provide up to EUR 50 billion to support Ukraine’s

financing needs and to contribute to its recovery, reconstruction and modernisation.

Under its Pillar 1, the Facility is set to deliver up to EUR 38.3 billion in direct budgetary

support by 2027, of which EUR 26.8 billion has already been disbursed.

1.1.2 Policy conditionality

Considering the exceptional circumstances, ERA MFA conditionality was structured

differently from standard MFA operations. Pursuant to Article 12(2) of the ULCM

Regulation, the policy conditions negotiated in the MoU were closely linked to the steps in

the Ukraine Plan – Ukraine’s medium-term agenda. They served as interim objectives towards

their implementation and reinforced the incentives for their timely execution. These steps

were designed to be achievable within the short implementation timeframe between the

Regulation’s entry into force and the end of 2024, which was the final deadline for adopting

the decision to release the sole instalment of the MFA. The ERA MFA’s policy conditionality

therefore focused on a limited set of conditions that were closely aligned with the Ukraine

Plan and reflected the policy areas of the previous MFA+ instrument: macro-financial

stability, state-owned enterprises, public administration and the rule of law, and energy. Each

policy condition was tied to a specific step in the Ukraine Plan, constituting a relevant action

towards its fulfilment. Additionally, a condition was introduced to foster cooperation and

investment between Ukraine and the EU in the defence sector.

6 The Commission package of 9 November 2022 consisted of three elements: (i) a regulation that establishes the MFA+

instrument; (ii) a technical amendment to the Financial Regulation, to allow optimal borrowing for Ukraine through the

diversified funding strategy; and (iii) a technical amendment to the MFF Regulation, which extends the use of the headroom

to guarantee the MFA+ loans to Ukraine. 7 Regulation (EU) 2022/2463 of the European Parliament and of the Council of 15 December 2022 establishing an Instrument

for providing support to Ukraine for 2023 (MFA+), OJ L 322, 16 December 2022, p. 1.

7

On macro-financial stability, Ukraine made progress in strengthening the resilience of its

financial sector. The National Bank of Ukraine approved the concept for the 2025 resilience

assessment of the banking system, marking a return to standard procedures for assessing the

quality of assets and conducting stress tests. Additionally, the Ukrainian parliament endorsed

in first reading the draft law on the sale of state-owned banks, thereby laying the groundwork

for a structured divestment framework aimed at reducing fiscal risks and fostering

competition in the banking sector by reducing state ownership.

On state-owned enterprises (SOEs), Ukraine took important steps to enhance corporate

governance and transparency. The government approved a list of key SOEs, identifying those

where independent supervisory boards would be established in line with international best

practices. Additionally, the selection process for the supervisory board of National Power

Company Ukrenergo was successfully completed, ensuring that the company’s governance

complied with OECD standards. To further improve SOE management, Ukraine also

submitted a draft plan for the corporatisation of selected key enterprises, paving the way for

their transition to joint-stock or limited liability companies. These conditions strengthened

oversight, reduced state interference and improved the operational efficiency of Ukraine’s

SOEs.

Efforts to improve public administration focused on enhancing fiscal governance and civil

service reform. The Ukrainian parliament approved the 2025 State Budget Law in its first

reading. This included a reform of civil service remuneration that introduced a more

predictable and transparent salary structure, ensuring fairer compensation that is

commensurate with responsibilities. Additionally, Ukraine prepared a draft methodology for

calculating the baseline in the framework of medium-term budgeting. This was a crucial step

towards implementing spending reviews to enhance fiscal discipline and efficiency in public

expenditure. This methodology, which has been developed in collaboration with the IMF, will

guide future budget declarations and provide a solid foundation for expenditure planning.

In the energy sector, Ukraine took steps to align its regulatory framework with EU standards,

advancing market integration and taxation reforms. A working group was established under

the Ministry of Energy to prepare the legislative changes necessary for implementing energy-

related EU regulations, including adjustments to taxation to facilitate the cross-border

electricity trade. Furthermore, the Ministry of Energy shared with the Commission the draft

law transposing the electricity integration package, a key milestone in Ukraine’s efforts to

harmonise its energy legislation with the EU framework. These conditions support Ukraine’s

energy security and gradual integration into the EU energy system.

On rule of law and the fight against corruption, Ukraine advanced reforms to strengthen

judicial independence, anti-corruption institutions and digitalisation in the judiciary. The High

Council of Justice appointed a majority of disciplinary inspectors to the Disciplinary

Inspectors Service, ensuring its operational capacity to address disciplinary cases in the

judiciary. The Ukrainian parliament also adopted a law extending the mandate of the Public

Council of International Experts so that it can continue to oversee the selection of judges for

the High Anti-Corruption Court. Additionally, Ukraine developed a roadmap for the

digitalisation of the judicial system, following an IT audit and extensive stakeholder

consultations. This initiative aimed at modernising court operations and improving access to

justice. Lastly, a roadmap for the development of the next anti-corruption strategy (2026-

2030) was submitted to the Commission. This contained a structured plan to enhance anti-

corruption efforts beyond 2025.

For the defence industry, Ukraine committed itself to closer cooperation with the EU on the

recovery, reconstruction and modernisation of its defence sector. In particular, Ukraine made

a commitment to: ‘promote cooperation with the Union on the recovery, reconstruction and

modernisation of Ukraine’s defence industry, in line with the objectives of Union programmes

8

aiming at the recovery, reconstruction and modernisation of the Ukraine Defence

Technological and Industrial Base and other relevant Union programmes, and commit to take

steps towards integration into the EU Single Market, notably through cooperation with the

European Defence Industry Programme once established.’

In December 2024, the Commission concluded that Ukraine met all the policy conditions

agreed in the MoU.

ERA MFA to Ukraine (Entry into force 28 October 2024 – end of availability period 31 December 2024, with

disbursements possible until 31 December 2025)

Regulation (EU)

2024/2773 Sole instalment

Loan amount

(EUR million) EUR 18 115 million

Implementation

Sole instalment released on 18 December 2024. First disbursement on

10 January 2025 for an amount of EUR 3 000 million,

following by monthly disbursements of EUR 1 billion from March 2025 until

including September 2025. Last two disbursements took place in October

2025 (EUR 4 billion) and November (EUR 4.1 billion)

Macro-financial

stability

Action 1: Approval of the concept for the 2025 resilience assessment of the

banking system. Fulfilled

Action 2: Endorsement by the Ukrainian parliament in first reading of the

draft law on the sale of state-owned banks. Fulfilled

State-owned

enterprises

Action 3: Sharing with the Commission the list of SOEs (from among those

identified as top key SOEs by the Cabinet of Ministers of Ukraine) for which

supervisory boards with a majority of independent members will be

appointed, as submitted to the Cabinet of Ministers. Fulfilled

Action 4: Selection by the nomination committee of the supervisory board of

National Power Company Ukrenergo. Fulfilled

Action 5: Submission to the Cabinet of Ministers of Ukraine of a draft plan for

corporatising SOEs from the list of top key SOEs. Fulfilled

Public

administration

Action 6: Endorsement by the Ukrainian parliament in first reading of the

State Budget Law for 2025, which enacts the reform of civil service

remuneration. Fulfilled

Action 7: Preparation and sharing with the Commission of the draft

methodology for the calculation of the baseline in the framework of medium-

term budgeting which will be used during the spending reviews. Fulfilled

Energy

Action 8: Creation of a working group to develop the legislative changes to

implement the relevant EU legislation regarding the energy sector, including

on energy-related taxation. Fulfilled

Action 9: Sharing with the Commission the draft law transposing the

electricity integration package. Fulfilled

Rule of law and

fight against

corruption

Action 10: Appointment of at least 50% (or majority) of disciplinary

inspectors of the Disciplinary Inspectors Service by the High Council of

Justice. Fulfilled

Action 11: Adoption of a law extending the mandate of the Public Council of

International Experts to ensure its effective participation in the ongoing

selection of 25 additional judges for the High Anti-Corruption Court.

Fulfilled

Action 12: Preparation of a roadmap for the development of IT solutions in

the judicial system, following inclusive consultations with stakeholders and

the public, and completion of an IT audit. Fulfilled

9

Action 13: Sharing with the Commission a plan/roadmap for the development

of the new anti-corruption strategy. Fulfilled

Defence industry

Action 14: Issuing a declaration that commits the Ukrainian authorities to

promoting cooperation with the EU on the recovery, reconstruction and

modernisation of Ukraine’s defence industry, in line with the objectives of EU

programmes aiming at the recovery, reconstruction and modernisation of the

Ukraine Defence Technological and Industrial Base and other relevant EU

programmes; and making a commitment to take steps towards integration into

the EU’s single market, notably through cooperation with the European

Defence Industry Programme (once it has been established). Fulfilled

2. EGYPT

2.1 Implementation of macro-financial assistance

2.1.1 Recent macro-financial assistance operations

In 2025, the second MFA operation of EUR 4 billion for Egypt was approved as part of the

EUR 5 billion MFA package underpinning the Strategic and Comprehensive Partnership with

this country. It was adopted by the European Parliament and the Council in June 2025. The

MoU, which was subject to the opinion of the Member States committee, was signed in July

2025. Following a positive assessment of the implementation of the 13 policy measures linked

to the first instalment of this MFA, progress on the implementation by Egypt of the concrete

and credible steps required by the political precondition, and with the IMF’s programme

remaining on track, the first instalment of EUR 1 billion was disbursed in January 2026. The

second and third instalments from the MFA operation, amounting to EUR 1.5 billion each,

are planned to be disbursed in mid-2026 and at the end of 2026/early 2027 respectively,

subject to a positive assessment should all the conditions be in place.

Egypt is implementing a four-year Extended Fund Facility (EFF) with the IMF, adopted in

December 2022 and valid until December 2026. The initial amount of the EFF was

USD 3 billion, later increased to USD 8 billion. In March 2025, the IMF Board also approved

a loan of USD 1.2 billion under the Resilience and Sustainability Facility (RSF), lifting the

total envelope of IMF support to Egypt to USD 9.2 billion. Following some delays in the

implementation of key policy measures, the combined fifth and sixth review under the EFF

and the first review under the RSF was concluded by a staff-level agreement in December

2025. This agreement was approved by the IMF Board in February 2026, enabling the

disbursement of around USD 2.3 billion, and bringing total IMF disbursements under the EFF

and RSF to approximately USD 5.2 billion.

Box 2. Summary of the previous MFA operation to Egypt

The EU and Egypt have agreed to deepen their relationship and develop a strategic and

comprehensive partnership for shared prosperity, stability and security, which covers

specific areas of cooperation. Underpinning the partnership is a financial package of up

to EUR 7.4 billion, consisting of short- and long-term support for the implementation of

Egypt’s macro-fiscal and socioeconomic reform agenda. In the past years, Egypt has

faced significant economic challenges, including high inflation, vulnerabilities in the

foreign exchange market, and spillovers from the conflict in the Gaza Strip (particularly

through lower Suez Canal revenues due to continued Houthi attacks on Red Sea

maritime transport). These developments have undermined Egypt’s economic stability,

put pressure on its external and fiscal positions and increased the country’s overall

10

vulnerability to external shocks. In this context, the Egyptian authorities requested

support through MFA from the EU in March 2024.

Given Egypt’s critical economic and financial situation and its role as an important

stabilising factor in an increasingly volatile region, the Commission proposed in

March 2024 to support Egypt with an MFA of up to EUR 5 billion in highly

concessional long-term loans, as a key component of the financial package underpinning

the Strategic and Comprehensive Partnership. The MFA package was divided into a

proposal for a short-term MFA operation of EUR 1 billion (exceptionally based on

Article 213 TFEU) and a proposal for a regular MFA operation of up to EUR 4 billion

(based on Article 212 TFEU). The use of Article 213 TFEU allowed full disbursement

in a single instalment already in 2024 and was necessary in view of Egypt’s urgent

financing needs and the European Parliament’s recess due to the elections in June 2024.

The Council adopted the short-term MFA decision in April 2024.  The short-term MFA

was underpinned by an MoU, which set out 16 economic policy measures. In line with

the Council Decision and the MoU, the disbursement of the support was also subject to

the implementation of concrete and credible steps towards respecting effective

democratic mechanisms. Following a positive assessment of the implementation of these

measures and with the IMF’s programme remaining on track, the single instalment was

fully disbursed in December 2024.

2.1.2 Policy conditionality

The economic policy measures agreed in the MoU underpinning the EUR 4 billion MFA aim

to address key weaknesses in the Egyptian economy, and to mitigate the economic and social

impacts stemming from the regional conflicts. They are building on reforms under the

previous MFA operation, the findings of the 2024 Operational Assessment, and close

engagement with partners including the IMF, OECD and the World Bank. They include

reforms structured along three main pillars: (i) macroeconomic stability and resilience;

(ii) competitiveness and the business environment; and (iii) the green transition. The policy

measures were selected on the basis of their relevance and feasibility. The comprehensive set

of reforms includes 62 measures in the MoU focusing on the following areas. They are

devised in full complementarity with actions implemented in the context of the

Neighbourhood, Development and International Cooperation Instrument. For instance, the

EU is supporting the implementation of reforms underpinning the MFA operation through

targeted bilateral actions to help improve public finance management and to mitigate potential

impacts of reforms on vulnerable populations, including those arising from subsidy reforms.

Pillar 1 of the policy conditionality covers reforms of the public finance and social sectors,

under the headline of macroeconomic stability and resilience. On revenues, the authorities

will prepare amendments to the income law, enhance the use of electronic payroll tax and

reform real estate taxation. In the area of public financial management, the Ministry of

Finance will prepare a new methodology for the compilation of general government data and

prepare reports on this basis. The authorities will enhance programme and performance

budgeting and strengthen the Ministry of Finance’s fiscal risk management, especially the

quantification and authorisation of sovereign guarantees. Implementation of the medium-term

budget will also be advanced, in particular by preparing a fiscal strategy paper with key

macro-fiscal projections over the multiannual horizon, and through improved coordination of

a common macroeconomic framework. Further actions under this pillar include improving

public debt management, strengthening fiscal transparency by improving publicly available

information on public debt and budget statistics, as well as strengthening the internal audit

11

function in the Ministry of Finance. Building on OECD and IMF Public Investment

Management Assessment recommendations, follow-up actions to strengthen public

investment management will be carried out. The Central Bank of Egypt will provide

information on exchange rate flexibility and foreign exchange market efficiency.

On social protection, the authorities will enhance the scope of their cash transfer and

microcredit programmes and will conduct a new household survey including a poverty

estimate. On employment, the new national employment strategy will be prepared, and a

comprehensive labour market IT platform for jobseekers, employers and institutions will be

launched. In the area of health, a review of universal healthcare insurance will be carried out

to improve access for women and informal workers.

Under Pillar 2, Egypt will advance reforms to enhance competitiveness and the business

environment. One of the priorities is to facilitate investment and FDI in the country, with

measures including the creation of an online platform that simplifies the licensing and

approval procedure for investments, publishing a negative list of FDI restrictions, and regular

updating of a list of regulations impacting foreign investment. The authorities will also

introduce competitive bidding in the process of allocation and sale of industrial land. As

regards governance of SOEs, the authorities will conclude a review process of 60 major

enterprises and establish a SOE database with their financial data. To enhance the

independence of the Egyptian Competition Authority, the relevant law will be amended and

executive regulations will be issued. Further measures under this pillar aim at cutting customs

clearance times, improving the transparency of export and import procedures, and advancing

public procurement reform.

Pillar 3 includes reforms related to the green transition. One of priorities is improved

management of scarce water resources, which includes the adoption of the National Water

Strategy, adopting some by-laws related to water management, introducing a fee for water

extracted from wells for non-agricultural uses, and approving guidelines for licensing

groundwater well drilling. In the area of energy, the authorities will approve the National

Energy Efficiency Action Plan, improve energy efficiency planning and revise the tariff paid

to investors in waste-to-energy projects (waste treatment that creates electricity or heat).

Another important measure will be preparing a roadmap to gradually open up the electricity

market. The authorities will also prepare a comprehensive climate-compatible trade

competitiveness study. Finally, the Red Sea marine ecosystem will become a protected area.

2.1.3 Political precondition8

Decision EU 2025/1267 of the European Parliament and of the Council of 24 June 2025 on

the provision of EUR 4 billion of MFA to Egypt requires Egypt to ‘continue to make concrete

and credible steps towards respecting effective democratic mechanisms, including a multi-

party parliamentary system and the rule of law, and guaranteeing respect for human rights’

(Article 2).

The Egyptian authorities have continued to demonstrate increased openness in engaging with

the EU, and a continuing commitment to discussing developments in the areas of democracy,

rule of law and human rights, within established bilateral frameworks and dialogues (notably

in the context of the Political Subcommittee in May 2025, the Association Committee in

September 2025, and the Leaders’ Summit in October 2025). Furthermore, the Egyptian

authorities have engaged in dialogues with the European Parliament both in Cairo and in

8 This assessment was prepared by the European External Action Service.

12

Brussels over numerous visits. In addition, the EU has welcomed Egypt’s consistent and

regular engagement with the EU Special Representative for Human Rights. The Egyptian

authorities have also continued to engage with the United Nations.

In 2025, Egypt continued to implement its political reform agenda underpinned by a range of

commitments, including those in the country’s National Human Rights Strategy, and the

national dialogue outcomes and recommendations in the context of the 2025 Universal

Periodic Review.

Domestically, several legislative reforms were undertaken. The Presidency returned the draft

Code of Criminal Procedures to parliament for review in light of local and international

demands to reconsider some provisions, leading to its adoption on 16 October 2025 and

presidential assent on 12 November 2025. Consultations on the by-laws of the Asylum law,

adopted in December 2024, also advanced, including through the National Council for Human

Rights (NCHR). Deliberations on a new Personal Status law for Christians have commenced.

The development of the executive regulations for the May 2025 Labour Law is also ongoing,

improving alignment with international labour rights standards (International Labour

Organization conventions). In addition, several announcements were made concerning the

release of criminal and political detainees (estimated at 13 463 in total), including some in

pre-trial detention (approximately 6 000). Most notably, on 22 September 2025 the

Presidency granted pardons and released prisoners as recommended by the NCHR. Finally,

the authorities submitted the fourth annual implementation report of the National Human

Rights Strategy (2021-2026) on 30 September, covering the period September 2024 - August

2025, thereby continuing the reporting cycle under the strategy.

At the institutional level, the NCHR maintained its ‘A status’ given by the Global Alliance of

National Human Rights Institutions (GANHRI), backed by the authorities’ commitment

towards reinforcing its capacity and independence in line with GANHRI recommendations

and with the standards promoted under EU cooperation. The NCHR has made increasing use

of its mandate to address national authorities, notably regarding individual cases, and to issue

direct appeals to the Presidency for the exercise of presidential clemency, as well as to issue

recommendations to state authorities.

At international level, Egypt has engaged with various regional and international human rights

mechanisms, including Geneva-based UN agencies. It underwent its fourth cycle of the

Universal Periodic Review in 2025 and submitted its report on 13 June 2025, supporting 82%

of the recommendations from UN Member States, a significant improvement compared to

previous years. Egypt has complied with its reporting requirements to the UN agencies in line

with the international treaties it has acceded to, with the last report to the Committee on the

Elimination of Racial Discrimination submitted on 12 June 2025. In addition, the election of

Egypt to the Human Rights Council for the 2026-2028 term provides an opportunity for

renewed engagement at the multilateral level.

Despite these notable advancements and renewed commitments, Egypt continued to face

challenges in the areas of democracy, rule of law and respect for human rights with persisting

restrictions on civic space, freedom of expression, peaceful assembly and association as well

as media freedom. These challenges underscore the need for continued commitment, dialogue

and cooperation with Egypt on human rights, democracy and rule of law and – in the spirit of

partnership – the need to continue working with Egypt on its path to achieving its national

commitments in these areas in the period 2025-2027.

13

In conclusion, the overall trend continued to remain positive and was conducive to permitting

the disbursement of the first instalment of the MFA support, as concrete and credible steps in

line with Article 2.1 of Decision (EU) 2025/1267 had been taken.

MFA FOR EGYPT

(Entry into force 1 December 2025 - end of availability period 1 June 2028)

Council Decision

(EU) 2025/1267 Three instalments

Amount EUR 4 000 million (loan)

Implementation Disbursement of the first instalment on 15 January 2026

Policy conditions 13 (first instalment)

Pillar 1: Macroeconomic stability and resilience

Exchange rate

flexibility and

foreign exchange

market efficiency

Share of relevant indicators to monitor exchange rate flexibility and foreign

exchange market efficiency.

Fulfilled

Revenue

mobilisation

Abolish Deemed basis tax returns.

Broadly fulfilled

Public finance

management

Develop a guide on the methodology for procedures for the preparation and

compilation of general government data, including transmission of financial

information between the economic authorities and the Ministry of Finance.

Fulfilled

Medium-term

budgetary

framework

a) Prepare an assessment report on the initial stage of the medium-term

budgetary framework,

b) Publish a fiscal strategy paper with key macro-fiscal projections over the

multiannual horizon,

c) Operationalise of a task force to ensure the consistency of a common

macroeconomic framework.

Fulfilled

Programme and

performance

budgeting

Advance the implementation of programme and performance budgeting by

developing a roadmap for its implementation.

Fulfilled

Fiscal risk

management

Enhance fiscal risk management by issuing a ministerial decree to organise

the Fiscal Risk Management Department.

Fulfilled

Public

investment

management

Strengthening public investment management by conducting a stocktaking

of the OECD and IMF (Public Investment Management Assessment)

recommendations to identify and prioritise relevant follow-up actions.

Fulfilled

Pillar 2: Competitiveness and business environment

14

Competitive

bidding for

industrial land

allocation

Apply competitive bidding on pricing for the allocation and sale of industrial

land.

Broadly fulfilled

Online

investment

licensing

platform

Launch an online investment licensing platform and setting up a roadmap for

the gradual expansion of this platform towards obtaining and paying most

licences, permits, and related services.

Fulfilled

Pillar 3: Green transition

Management of

water resources

a) Issue a decree specifying a fee in exchange for every cubic meter of water

extracted from wells for non-agricultural uses,

b) Approve of guidelines and procedures for licensing groundwater well

drilling and operations.

Fulfilled

Feed-in tariff for

waste-to-energy

Approve of a revised feed-in tariff for waste-to-energy projects.

Broadly fulfilled

National Energy

Efficiency Plan

Expand the mandate of the Cabinet’s Energy Planning Unit to include

strategic energy efficiency planning.

Fulfilled

Safeguarding the

Red Sea’s natural

capital

Declare the Red Sea marine ecosystem a protected area in view of its

importance to ensuring a sustainable tourism industry.

Broadly fulfilled

3. JORDAN

3.1 Implementation of macro-financial assistance

3.1.1 Recent macro-financial assistance operation

In 2025, the Jordan MFA IV was adopted by the co-legislators and started to be disbursed

against a backdrop of financing pressures and compounding regional shocks. The request

from the Jordanian authorities for MFA IV operation came in October 2023, reflecting the

country's continued and sizeable financing needs and the persistent challenges weighing on

Jordan’s economy. These stemmed from a prolonged sequence of external shocks, including

the war in neighbouring Syria and the influx of refugees that followed, alongside Russia’s

full-scale war of aggression against Ukraine, which were heightened by the outbreak of the

war in Gaza in October 2023. This has heightened uncertainty across the region, weighing on

consumer sentiment and the tourism sector in Jordan. At the same time, sustained Houthi

attacks on cargo and energy vessels in the Red Sea significantly disrupted shipping routes to

Asia, affecting Jordan's trade flows. Following Jordan’s request, the Commission tabled its

proposal on 8 April 2024 (COM/2024/159) and the co-legislators adopted the programme on

14 April 2025 (Decision (EU) 2025/793). Under MFA IV, the first disbursement of EUR 250

million was made on 17 September 2025, after the relevant pre-requirements were assessed

as fulfilled, notably: (i) fulfilment of the political precondition, including the respect of

effective democratic mechanisms, the rule of law and human rights, which was positively

assessed by the European External Action Service (EEAS); and (ii) a continuous satisfactory

track record on the implementation of the IMF EFF programme, which was assessed

positively by the Commission (three positive programme reviews at the time of

disbursement). The second and third disbursements are planned to take place in 2026 and

15

2027, subject to fulfilment of the agreed policy measures as set out in the MFA IV MoU, in

addition to the pre-conditions applicable to the first disbursement.

Before the Commission proposal for MFA IV, Jordan made a second request, in January 2025

for an additional MFA V. The request reflected Jordan's continued and pressing financing

needs, against a backdrop of persistent fiscal pressures, an elevated level of public debt, and

ongoing current account deficits. The prolonged impact of the Gaza war, including reduced

tourism receipts, weakened trade flows due to the Red Sea crisis, and heightened security

costs, continued to strain public finances and limit Jordan's ability to meet its external

financing requirements without additional international support. The Commission submitted

its proposal on 5 August 2025 (COM(2025) 456) and the co-legislators adopted the

programme on 20 January 2026 (Decision (EU) 2026/188). The MoU and Loan Facility

Agreement are expected to be signed over the summer in 2026, with disbursements planned

during 2026-2027. MFA IV and V are both part of the EU-Jordan Strategic and

Comprehensive Partnership 2025-2027.

Jordan is implementing the EFF arrangement with the IMF, which was approved in January

2024 and amounts to USD 1.2 billion for the period 2024-2027. This programme replaced the

previous four-year EFF, which had been set to expire in March 2024, but was ended early as

most funds had already been disbursed. A new arrangement was deemed necessary to sustain

the momentum of reform and address heightened regional and economic uncertainties. The

ongoing EFF supports continued fiscal consolidation to put public debt on a downward

trajectory to below 80% of GDP by 2028, while safeguarding monetary and financial stability

and accelerating structural reforms to foster growth and job creation.

On 12 December 2025, the IMF Executive Board completed the 4th review under the EFF

and reported that the programme remains firmly on track. The decision provided immediate

access to around USD 130 million and brought total purchases under the EFF to

SDR 535.238 million (around USD 733 million). In addition to the EFF programme, on 25

June 2025, the IMF also made available around USD 700 million in loans to Jordan under the

Box 3. Summary of past MFA operations in Jordan

Given the succession of external shocks to which Jordan has been exposed over the past

decades, and its role as a cornerstone of regional stability, the country has been the

recipient of substantial and multifaceted support from international partners, notably

through MFA. From 2014 to 2023, Jordan benefited from three MFA programmes

(MFA I: EUR 180 million; MFA II: EUR 200 million; MFA III: EUR 500 million), with

MFA III complemented by a EUR 200 million COVID-19 top-up under the EU’s

EUR 3 billion MFA COVID-19 emergency package for 10 enlargement and

neighbourhood partners.

All three MFA programmes were disbursed in tranches conditional on the satisfactory

implementation of IMF-supported adjustment programmes and the fulfilment of specific

policy conditions agreed with the Commission, covering areas such as public financial

management, governance and anti-corruption, social protection, and the business

environment. Programme implementation was broadly satisfactory across all three

operations, with conditions largely met within agreed timeframes, though some delays

occurred in the context of the COVID-19 pandemic and the associated disruptions to the

momentum of reform. Overall, these operations have provided EUR 1.08 billion in loans

to Jordan since 2014.

16

RSF to support policy reforms that reduce macro-critical balance of payments risks associated

with climate change and pandemic preparedness. At the same board meeting on

12 December 2025, the IMF also completed the 1st RSF review, allowing a disbursement of

SDR 79.182 million (about USD 110 million). A staff-level agreement for the 5th review was

made in April 2026.

3.1.2 Policy conditionality

Building on reforms under previous MFA operations, the findings of the 2024 Operational

Assessment, and close engagement with partners including the IMF and the World Bank

(among other stakeholders), the MoU of Jordan MFA IV sets out a sequenced reform agenda

across five pillars. This reform agenda is complementary to the policy matrices underpinning

budget support operations by the European Commission in Jordan and builds on related

capacity development activities accordingly. Policy conditionality under MFA IV is linked

exclusively to the second and third disbursements, expected in 2026 and 2027. At the time of

drafting this report, the second and third disbursements have not yet been requested by Jordan.

Under public finance management, the MFA IV MoU targets two bottlenecks weighing on

fiscal sustainability: weak domestic revenue mobilisation and uneven accountability for

public resources. On revenues, the Income and Sales Tax Department will institutionalise

risk-based compliance by creating a Risk Management Directorate and the Ministry of

Finance will adopt a Medium-Term Revenue Strategy (with IMF coordination) (2nd

disbursement), followed by the launch of the Integrated Tax Administration System upgrade

to enable more data-driven compliance (3rd disbursement). On accountability, the Audit

Bureau will roll out a system to track the implementation of audit recommendations (2nd

disbursement). Finally, for the third disbursement, procurement and audit transparency will

be strengthened through annual procurement reports by the government tender and

procurement departments (procurement and tender departments), the Audit Bureau’s phased

withdrawal from ex ante controls, and expanded coverage and follow-up reporting in its

annual report.

Under the governance pillar, the MoU focuses on strengthening prevention and the

enforcement of anti-corruption/integrity rules by renewing the strategic framework and

making reporting channels clearer and more usable. In particular, Jordan will develop and

approve a new National Integrity and Anti-Corruption Strategy 2026-2030, developed with

OECD support (2nd disbursement). In parallel, to reduce fragmentation in reporting and

improve trust in whistleblowing, the Jordan Integrity and Anti-Corruption Commission will

review the existing reporting channels and issue an operational guideline clarifying mandates,

while boosting the visibility of Bekhedmetkom (Jordan’s government e-services portal)

online platform as a primary external reporting channel (3rd disbursement).

Under social and labour market policies, the MoU targets the primary constraints behind low

participation in employment and persistent mismatches: a technical and vocational education

and training system that is still insufficiently aligned with employers’ needs, and weak labour-

market diagnostics and enforcement. To address this, the authorities will develop and approve

a new national vocational education strategy with structured private-sector involvement (2nd

disbursement) and strengthen the evidence base by publishing more granular data on informal

employment through an upgraded Labour Force Survey module (2nd disbursement).

Implementation capacity will be reinforced through measures to improve the electronic labour

inspection system (2nd and 3rd disbursements) and to operationalise a labour market

information system via data-sharing arrangements and a validation phase (2nd and 3rd

disbursements). Finally, to broaden social security coverage and support the sustainability of

the system, the authorities will advance social security reforms, including to extend coverage

17

to flexible/non-standard work, and will monitor implementation through regular and publicly

available reporting on progress (2nd and 3rd disbursements).

Under the energy pillar, the MoU targets two constraints that weigh on affordability and

resilience: still-high energy and resource consumption (especially in buildings and the public

sector) and skills and institutional gaps that slow the energy transition. To strengthen

governance and the capacity to implement policies, the Ministry of Energy and Mineral

Resources will establish an Energy Efficiency and Climate Change Department to drive

forward policies and programmes to rationalise consumption and support decarbonisation

planning (2nd disbursement). Implementation will be reinforced through practical and

scalable measures: (i) updating and mainstreaming curricula on energy efficiency, solar

energy and e-vehicle charging (via the Energy Academy, and shared with universities) (3rd

disbursement); (ii) conducting energy audits for three government buildings aligned with

internationally recognised Excellence in Design for Greater Efficiencies (EDGE) standards

(3rd disbursement); and (iii) installing solar panels in 50% of Jordan’s municipalities by end-

2026 to reduce municipal electricity costs and strengthen energy security (3rd disbursement).

Under the business environment, the MoU targets a key bottleneck to investment and new

business entry: lengthy, fragmented and largely paper-based administrative procedures, which

raise costs, create delays, and discourage new projects. To improve investment

competitiveness and streamline market entry, the Ministry of Investment will digitise all

investor-facing services (98 services, including licensing, registration and investor permits)

by end-2026, laying the operational foundation for a one-stop ‘investor journey’ portal (3rd

disbursement).

4. NORTH MACEDONIA

4.1 Implementation of macro-financial assistance

4.1.1 Recent macro-financial assistance operation

In response to North Macedonia’s high gross external financing needs in 2023 and

uncertainties as to the availability and costs of external market financing, in February 2023

the Commission adopted a proposal for an MFA decision of up to EUR 100 million in the

form of loans, which was adopted by the European Parliament and the Council in July 20239.

The MFA operation aimed to address North Macedonia’s short-term balance of payments

needs and fiscal vulnerabilities. Following an agreement with North Macedonia on the policy

conditions to underpin the new MFA, the MoU entered into force in February 2024.

The disbursement was expected to be made in two instalments of EUR 50 million each, with

the release of each instalment conditional on: (i) North Macedonia making progress on

implementing a number of policy conditions agreed between the Commission and the

authorities and listed in an MoU; and (ii) a satisfactory track record in implementing the IMF

programme. The policy conditions aimed to address some of the most important economic

weaknesses of North Macedonia. Following the completion of the agreed policy conditions,

and after the relevant pre-requirements were assessed as fulfilled (notably the political

precondition and a satisfactory track record under the IMF programme), the first disbursement

of EUR 50 million was made in May 2024.

Progress in implementing the MFA conditions attached to the second and final instalment of

EUR 50 million has stalled, however, although the country made some progress in

implementing the respective measures. This included the adoption of several laws by North

9 Decision (EU) 2023/1461 of the European Parliament and of the Council of 12 July 2023 providing macro-financial

assistance to the Republic of North Macedonia, OJ L 180, 17.7.2023, p. 1.

18

Macedonia’s parliament. The authorities have not submitted a compliance statement as they

have made no request for the second instalment and thus there has been no formal assessment

by the European Commission. In addition, the IMF’s Precautionary and Liquidity Line (PLL)

expired in November 2024 without the second review taking place, which means that one

essential precondition for disbursements under the EU’s MFA operation is no longer fulfilled.

Under these circumstances, it is unlikely that the Commission will disburse the second

instalment. The availability period of the MFA operation ends in August 2026.

Box 4. Summary of recent past MFA operations to North Macedonia

In 2020-2021, North Macedonia benefited from MFA support under the EU’s EUR 3 billion

package to ten enlargement and neighbourhood countries (the so-called ‘COVID-19

MFA’). Following a request from the authorities in April 2020, the Commission submitted

a proposal for a decision providing MFA of up to EUR 160 million in loans. The European

Parliament and the Council adopted this decision in May 202010. The assistance was

provided in two equal instalments of EUR 80 million, dependent on the fulfilment of nine

policy conditions laid down in an MoU signed by the two sides, which aimed at mitigating

key weaknesses of the economy of North Macedonia and the economic and social impact

of the COVID-19 pandemic. The policy conditions focused on the following thematic

areas: public finance management, financial stability, good governance and the fight

against corruption, the business environment and social policy.

Against a backdrop of tighter global financial conditions, higher energy prices and higher-

than-expected losses by the state-owned electricity producer, North Macedonia requested

a new MFA in April 2022. The Commission considered North Macedonia’s relative

economic resilience and assessed whether the country had alternative financing options. In

October 2022, the authorities renewed their request. At the same time, the government

secured a 24-month PLL with the IMF of up to EUR 530 million that was officially

approved in November 2022. Upon approval of the PLL, North Macedonia received

approximately EUR 110 million. An additional EUR 155 million was disbursed following

the completion of the first review in January 2024.

4.1.2 Policy conditionality

The policy conditions laid down in the MoU for the MFA operation build on the 2020 MFA

and contain 20 policy measures that focus on reforms addressing fiscal governance, tax

policy, the management of public investments, public-private partnerships, the business

environment, education and the labour market, renewable energy sources and energy

efficiency, reform of the judiciary, and the fight against corruption.

In the area of fiscal governance, in line with the conditions agreed under the MFA ahead of

the first disbursement, the new Fiscal Council provided for in the 2022 Organic Budget Law

was established in 2023. The North Macedonian parliament appointed the Council’s six

members, and the Fiscal Council’s rulebook and statutes were approved. As required by the

conditions for the second instalment, the Fiscal Council prepared an independent analysis of

the 2025-2029 Fiscal Strategy. However, the Fiscal Council is facing substantial challenges

10 Decision (EU) 2020/701 of the European Parliament and of the Council of 25 May 2020 on providing macro-financial

assistance to enlargement and neighbourhood partners in the context of the COVID-19 pandemic. OJ L167, 27.5.2020, p.

31.

19

in ensuring that it is fully staffed. In addition, its legal position is not sufficiently clear to

guarantee its operational independence.

As also required for the first instalment, the government increased the staff of the new

Department for Public Investment Management (PIM) within the Ministry of Finance to

ensure centralised oversight of public sector investment (including by public enterprises) with

the aim of improving the management of public investment. In line with the conditionality for

the second instalment, the Ministry of Finance incorporated guidelines on the appraisal of

projects into the PIM Decree adopted in April 2025. IMF and World Bank recommendations

have been included. However, implementation of the PIM Decree critically hinges on the

setting up of an integrated financial management and information system, which is lagging.

The government has still not adopted the draft law on public-private partnerships (PPP),

which would provide for a better monitoring of fiscal risks arising from PPPs.

Regarding the business environment, the new Small and Medium-sized Enterprise Strategy

2025-2030, based on the Small Business Act, was adopted in July 2025. The Ministry of

Economy and Labour has started with the implementation of measures deriving from the new

act.

A key milestone in the government’s efforts to improve energy efficiency was the amendment

of the Law on the Development Bank to enable the establishment of the Energy Efficiency

Fund, as required in the MoU conditions for the first instalment. The Energy Efficiency Fund

will support public sector investments in energy efficiency through a sustainable financial

model, thus reducing dependence on grants and promoting cost-saving mechanisms.

However, while the rules of procedure of the Energy Efficiency Fund have been drafted, the

corresponding Energy Efficiency Committee that had to adopt the rules has not yet been

established. In September 2025, the parliament adopted amendments to the Energy Efficiency

Law, in compliance with the EU Energy Efficiency Directive 2018/2002 and in line with the

opinion given by the Energy Community. Already in 2024, the government implemented the

complete unbundling and certification of the gas transmission system operator NOMAGAS,

as required by the third energy package.

In the policy area of judiciary reform and anti-corruption measures, on 29 December 2025,

the parliament adopted a revised legal framework on the Judicial Council, the Law on the

Judicial Council. It is deemed, however, not to be fully in line with the recommendations of

the respective Peer Review Mission. The new framework is expected to further enhance the

transparency and independence of the Council, including its members. In line with the

requirements for the first disbursement, the government had adopted a new strategy on

judicial reform (2023-2027) in 2024, which incorporated lessons from the previous strategy

and feedback from the Commission. This strategic framework aims to strengthen judicial

independence, efficiency and compliance with EU standards, reinforcing the rule of law.

Regarding the MoU’s condition on the State Commission for the Prevention of Corruption

(SCPC), in February 2024 a new President and new members of the SCPC were appointed.

In July 2025, the President of the SCPC resigned after being indicted for disclosing official

secrets and falsifying an exam to obtain a security certificate. In December 2025, a new

President of the SCPC was appointed by parliament. In January 2025 a commissioner resigned

following the opening of two cases against her for conflict of interests. These events have

called into question the credibility of the SCPC. No new specialised staff has been recruited.

Another MoU requirement for disbursement of the second instalment has not been met:

strengthening the human and financial resources of the Office of the Basic Public Prosecutor

for Organised Crime and Corruption by recruiting at least five public prosecutors and ten

20

financial experts, creating specialised units, and increasing the number of proactive

investigations.

Furthermore, the MoU requires the government to adopt legislation to implement the new law

on anti-money laundering and the fight against terrorism (AML/CFT law), including a by-

law on virtual asset service providers. Subordinate/implementing acts (by-laws, decisions)

have been in effect since late 2024, which derive from the AML/CFT law. The National

Bank’s implementing ‘Decision on the manner of implementing the measures for prevention

of money laundering and financing of terrorism’ is one such act already in force. However,

there is no clear evidence that a comprehensive, specific implementing regulation on virtual

asset service providers was adopted in 2025, or that all the anticipated regulatory details

(licensing, technical standards, detailed compliance rules) are finalised and in force. The

MONEYVAL follow-up report indicates progress, but also notes that some deficiencies in

technical compliance remain, especially relating to the supervision and regulation of newer

sectors (e.g. virtual assets, financial sector regulation). The fact that some technical

compliance gaps remain (per MONEYVAL) suggests that implementation is still evolving.

Efforts to reduce the informal economy made progress with the adoption of the 2023-2027

strategy and action plan in 2023, which focused on raising awareness, reducing administrative

burdens and improving monitoring mechanisms. However, their implementation has stalled,

and inspections have been scaled back. Additionally, as a requirement for the disbursement

of the first instalment, the government adopted a smart specialisation strategy, which targets

key sectors such as agriculture, ICT and sustainable materials, while fostering cooperation

between academia and industry.

Also in line with the conditions for the first instalment, in the area of education, the

government adopted new laws on vocational education, secondary education and adult

education with the aim of improving alignment with the needs of the labour market. The

reforms emphasise work-based learning, skills development, and regional vocational

education and training centres to address labour market mismatches and enhance employment

prospects.

MFA FOR NORTH MACEDONIA

(Entry into force 17 July 2023 - end of availability period 2 August 2026)

Decision (EU)

2020/701 First instalment

Amount (EUR million) Up to EUR 50 million

Implementation

8 May 2024

Policy conditions

First instalment

Public finance Make the Fiscal Council fully operational by appointing all its members

and by adopting its statutes and rulebook, fully taking into account the

Commission’s comments. Recruit at least 50% of the staff of the

Council’s secretariat. Fulfilled

Strengthen the newly established Public Investment Department in the

Ministry of Finance by recruiting at least 50% of the staff (7 members

of staff). Fulfilled

21

The parliament is to adopt the solidarity tax law as well as amendments

to the VAT law and the profit tax law with a view to reducing tax

exemptions. Fulfilled

Business environment The government is to adopt a new strategy on the formalisation of the

informal economy (2023-2027), along with an action plan for 2023-

2025. Fulfilled

The government is to adopt the smart specialisation strategy and a

related action plan. Fulfilled

Education and the

labour market

The government is to adopt the new law on vocational education and

training, the law on secondary education and the law on adult education;

and submit them to the parliament. Fulfilled

Energy The parliament is to adopt amendments to the Law on the Development

Bank to set up the Energy Efficiency Fund aimed at investments in the

public sector. Fulfilled

Judiciary, good

governance, and the

fight against

corruption

The government is to adopt the new strategy on judicial reform (2023-

2027), taking into account the lessons drawn from implementing the

2017-2022 strategy, in line with the Commission comments. Fulfilled

22

Annex11 1: MFA operations by date of decision, 1990-2025, amounts in million EUR

11 The data presented in the Annex tables and graphs cover the reporting period ending on 31 December 2025, with a cut-off date of 31 March 2026. In January 2026, the

European Parliament and the Council adopted a new Macro-Financial Assistance operation for Jordan, of a maximum amount of EUR 500 million.

Co un

try 19

90 19

91 19

92 19

93 19

94 19

95 19

96 19

97 19

98 19

99 20

00 20

01 20

02 20

03 20

04 20

05 20

06 20

07 20

08 20

09 20

10 20

11 20

12 20

13 20

14 20

15 20

16 20

17 20

18 20

19 20

20 20

21 20

22 20

23 20

24 20

25 To

tal Nu

mb er

of

op er

ati on

s

Bu lga

ria 29

0 11

0 25

0 10

0 75

0 4

Cz ec

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Fe d.

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37 5

37 5

1

Es to

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40 1

Hu ng

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0 18

0 10

50 2

La tvi

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80 1

Lit hu

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10 0

10 0

1

Ro ma

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5 80

12 5

20 0

78 0

4

Slo va

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0 13

0 1

Al ge

ria 40

0 20

0 60

0 2

Eg yp

t 10

00 40

00 50

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Isr ae

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7.5 18

7.5 1

Jo rd

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0 20

0 70

0 50

0 15

80 4

Le ba

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80 80

1

Tu nis

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0 50

0 60

0 14

00 3

Ar me

nia 58

10 0

15 8

2

Be lar

us 55

55 1

Al ba

nia 70

35 20

25 18

0 33

0 5

Bo sn

ia &

He rze

go vin

a 60

60 10

0 25

0 47

0 4

Ko so

vo (U

NS CR

12 44

) 35

30 50

10 0

21 5

4

No rth

M ac

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ia 40

80 18

16 0

10 0

39 8

5

M on

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gro 20

60 80

2

Se rb

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0 20

0 1

Se rb

ia &

M on

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gro 34

5 13

0 70

54 5

3

Ge or

gia 17

5 33

.5 46

46 45

15 0

49 5.5

6

M old

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45 15

15 15

45 90

10 0

10 0

15 0

14 5

72 0

10

Uk rai

ne 85

20 0

15 0

11 0

50 0

10 00

18 00

10 00

12 00

25 20

0 18

11 6

49 36

1 11

Ta jik

ist an

95 95

1

Ky rgy

z R ep

ub lic

30 30

1

Am ou

nt ap

pr ov

ed 87

0 18

08 48

0 0

62 0

25 5

15 52

3 15

0 46

0 16

5 39

3 31

5 70

25 0

83 .5

12 5

0 44

6 59

0 0

0 25

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00 70

0 10

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35 00

0 25

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24 5

19 11

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30 5

65 30

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No . o

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6 6

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2 87

87

Accession and Pre-Accession Neighbourhood

East Current Member States*

Neighbourhood

South Other

23

Annex 2: Status of disbursements made by date of decision at the end of December 2025

Status of effective disbursements as of end-December 2025 (in millions of €)

Authorisations Disbursements

Country Date of Reference of Maximum Dates of Amounts of Totals Undisbursed

Decision Decision amount disbursements disbursements disbursed

Hungary 22.02.90 90/83/EC 870 Apr. 1990 350 610 260

(Loan) Feb. 1991 260

Czech and 25.02.91 91/106/EC 375 Mar. 1991 185 375

Slovak Federal Republic Mar. 1992 190

Hungary 24.06.91 91/310/EC 180 Aug. 1991 100 180

(Loan) Jan. 1993 80

Bulgaria 24.06.91 91/311/EC 290 Aug. 1991 150 290

(Loan) Mar. 1992 140

Romania 22.07.91 91/384/EC 375 Jan. 1992 190 375

(Loan) Apr. 1992 185

Israel 22.07.91 91/408/EC 187.5 Mar. 1992 187.5 187.5

(Loan)

Algeria 23.09.91 91/510/EC 400 Jan. 1992 250 400

(Loan) Aug. 1994 150

Albania 28.09.92 92/482/EC 70 Dec. 1992 35 70

(Grant) Aug. 1993 35

Bulgaria 19.10.92 92/511/EC 110 Dec. 1994 70 110

(Loan) Aug .1996 40

Baltics 23.11.92 92/542/EC 220 135 85

(Loans); of which:

Estonia (40) Mar. 1993 20 (20) (20)

Latvia (80) Mar. 1993 40 (40) (40)

Lithuania (100) July 1993 50 (75) (25)

Aug. 1995 25

Romania 27.11.92 92/551/EC 80 Feb. 1993 80 80

(Loan)

Moldova 13.06.94 94/346/EC 45 Dec. 1994 25 45

(Loan) Aug. 1995 20

Romania 20.06.94 94/369/EC 125 Nov. 1995 55 125

(Loan) Sep. 1997 40

Dec. 1997 30

Albania 28.11.94 94/773/EC 35 June 1995 15 35

(Grant) Oct. 1996 20

Algeria 22.12.94 94/938/EC 200 Nov. 1995 100 100 100

(Loan)

24

Slovakia 22.12.94 94/939/EC 130 July 1996 130

(Loan)

Ukraine 22.12.94 94/940/EC 85 Dec. 1995 85 85

(Loan)

Belarus 10.04.95 95/132/EC 55 Dec. 1995 30 30 25

(Loan)

Ukraine 23.10.95 95/442/EC 200 Aug. 1996 50 200

(Loan) Oct. 1996 50

Sep. 1997 100

Moldova 25.03.96 96/242/EC 15 Dec. 1996 15 15

(Loan)

Former Yugoslav 22.07.97 97/471/EC 40 Sep. 1997 25 40

Republic of Macedonia Feb. 1998 15

(Loan)

Bulgaria 22.07.97 97/472/EC 250 Feb. 1998 125 250

( Loan) Dec. 1998 125

Armenia, Georgia 17.11.97 97/787/EC 375 294.5

and Tajikistan amended by

(Loans and Grants) 28.3.00 00/244/EC

Agreed amounts with the recipent countires: 328 294.5 33.5

Armenia 58 Dec. 1998 (Loan) 28 58

(Loan and Grant) Dec. 1998 (Grant) 8

Dec. 1999 (Grant) 4

Feb. 2002 (Grant) 5.5

Dec. 2002 (Grant) 5.5

June 2004 (Grant) 5.5

Dec. 2005 (Grant) 1.5

Georgia 175 Jul. 1998 (Loan) 110 141.5 33.5

(Loan and Grant) Aug. 1998 (Grant) 10

Sep. 1999 (Grant) 9

Dec. 2001 (Grant) 6

Dec. 2004 (Grant) 6.5

Tajikistan 95 Mar. 2001 (Loan) 60 95

(Loan and Grant) Mar. 2001 (Grant) 7

Dec. 2001 (Grant) 7

Feb. 2003 (Grant) 7

May. 2005 (Grant) 7

Oct. 2007 (Grant) 7

Ukraine 15.10.98 98/592/EC 150 July 1999 58 58 92

(Loan) 12.07.02 02/639/EC

25

Albania 22.04.99 99/282/EC 20 20

( Loan)

Bosnia 10.05.99 99/325/EC 60 Dec. 1999 (Grant) 15 60

(Loan and Grant) amended by Dec. 1999 (Loan) 10

10.12.01 01/899/EC Dec. 2000 (Grant) 10

Dec. 2000 (Loan) 10

Dec. 2001 (Grant) 15

Bulgaria 08.11.99 99/731/EC 100 Dec. 1999 40 100

(Loan) Sep. 2000 60

Former Yugoslav 08.11.99 99/733/EC 80 Dec. 2000 (Grant) 20 98

Republic of 18 Dec. 2000 (Loan) 10

Macedonia 10.12.01 01/900/EC Dec. 2001 (Loan) 12

(Loan and Grant) Dec. 2001 (Grant) 10

May 2003 (Grant) 10

June 2003 (Loan) 10

Dec. 2003 (Loan) 18

Dec. 2003 (Grant) 8

Romania 08.11.99 99/732/EC 200 June 2000 100 150 50

(Loan) July 2003 50

Kosovo 19.02.00 00/140/EC 35 Mar. 2000 20 35

(Grant ) Aug. 2000 15

Montenegro 22.05.00 00/355/EC 20 Aug. 2000 7 20

(Grant ) Dec. 2000 13

Moldova 10.07.00 00/452/EC 15 15

(Loan) 19.12.02 02/1006/EC

Kosovo 27.06.01 01/511/EC 30 Sep. 2001 15 30

(Grant) Dec. 2002 15

Serbia and 16.07.01 01/549/EC 345 Oct. 2001 (Loan) 225 345

Montenegro Oct. 2001 (Grant) 35

(ex FRY) 10.12.01 01/901/EC Jan. 2002 (Grant) 40

(Loan and Grant) Aug. 2002 (Grant) 45

Ukraine 12.07.02 02/639/EC 110 May. 2014 100 110

(Loan) Amendment of Decision Nov. 2014 10

98/592/EC

Serbia and 05.11.02 02/882/EC 130 Dec. 2002 (Grant) 30 105 25

Montenegro Feb. 2003 (Loan) 10

(ex FRY) Aug. 2003 (Grant) 35

(Loan and Grant) Aug. 2003 (Loan) 30

Bosnia 05.11.02 02/883/EC 60 Feb. 2003 (Grant) 15 25 the rest was

(Loan and Grant) Dec. 2003 (Grant) 10 paid under

04/861/EC

Moldova 19.12.02 02/1006/EC 15 15

(Grant)

Serbia and 25.11.03 03/825/EC 70 Dec. 2004 10 10 20

Montenegro the rest was

(ex FRY) paid under

Amendment of Decision 02/882/EC (Grant) 04/862/EC

Albania 29.04.04 04/580/EC 25 Nov. 2005 (Grant) 3 25

(Loan and Grant) Mar. 2006 (Loan) 9

July 2006 (Grant) 13

amended by

amended by

26

Bosnia 07.12.2004 04/861/EC the balance of Dec. 2004 (Loan) 10 35

Amendment of Decision 02/883/EC June 2005 (Grant) 15

02/883/EC (Loan and Grant) Feb. 2006 (Loan) 10

Serbia and 07.12.2004 04/862/EC the balance of Apr. 2005 (Loan) 15 40

Montenegro 03/825/EC Dec. 2005 (Grant) 25

(ex FRY)

Amendment of Decision 02/882/EC (Loan and Grant)

Georgia 24.01.06 06/41/EC 33.5 Aug. 2006 11 22 11.5

(Grant) Dec. 2006 11

Kosovo 30.11.06 06/880/EC 50 Sep. 2010 30 30 20

(Grant)

Moldova 16.04.07 07/259/EC 45 Oct. 2007 20 45

(Grant) Jun. 2008 10

Dec. 2008 15

Lebanon 10.12.07 07/860/EC 80 Dec. 2008 (Grant) 15 40 40

(Loan and Grant) June 2009 (Loan) 25

Georgia 30.11.09 09/889/EC 46 Dec. 2009 15.3 46

(Grant) Jan. 2010 7.7

Aug. 2010 23

Armenia 30.11.09 09/890/EC 100 June 2011 (Grant) 14 100

(Loan and Grant) July 2011 (Loan) 26

Dec. 2011 (Grant) 21

Feb. 2012 (Loan) 39

Bosnia and 30.11.09 09/891/EC 100 Feb. 2013 50 100

Herzegovina (Loan) Oct. 2013 50

Serbia 30.11.09 09/892/EC 200 July 2011 100 100 100

(Loan)

Ukraine 29.06.10 646/2010/EU 500 Nov. 2014 250 500

(Loan) Apr. 2015 250

Moldova 20.10.10 938/2010/EU 90 Dec. 2010 40 90

(Grant) Sep. 2011 20

Apr. 2012 30

Georgia 12.08.13 778/2013/EU 46 Jan. 2015 (Grant) 13 46

(Loan and Grant) Apr. 2015 (Loan) 10

May 2017 (Grant) 10

May 2017 (Loan) 13

Kyrgyz Republic 22.10.13 1025/2013/EU 30 Jun. 2015 (Grant) 10 30

(Loan and Grant) Oct. 2015 (Loan) 5

Feb. 2016 (Grant) 5

Apr. 2016 (Loan) 10

Jordan 11.12.13 1351/2013/EU 180 Feb. 2015 100 180

(Loan) Oct. 2015 80

Tunisia 15.5.14 534/2014/EU 300 May 2015 100 300

(Loan) Dec. 2015 100

July 2017 100

Ukraine 14.04.14 2014/215/EU 1 000.0 June 2014 500 1 000.0

(Loan) Dec. 2014 500

Ukraine 15.04.15 2015/601/EU 1 800.0 July 2015 600 1 200.0 600.0

(Loan) Apr. 2017 600

Tunisia 06.07.16 2016/1112/EU 500.0 Oct. 2017 200 500.0

(Loan) June 2019 150

Oct. 2019 150

Jordan 14.12.16 2016/2371/EU 200.0 Oct. 2017 100 200.0

(Loan) July 2019 100

Moldova 13.09.17 2017/1565/EU 100.0 Oct. 2019 30 60.0 40.0

(Loan and Grant) July 2020 30

27

Georgia 18.04.2018 2018/598/EU 45.0 Dec. 2018 20 45.0

(Loan and Grant) Nov. 2020 25

Ukraine 04.07.2018 2018/947/EU 1 000.0 Dec. 2018 500 1 000.0

(Loan) May. 2020 500

Jordan 17.01.2020 2020/33/EU 500.0 Nov. 2020 100 500.0

(Loan) Jul. 2021 200

May 2023 200

Jordan 25.05.2020 2020/701/EU 200.0 Nov. 2020 150 200.0

(Loan) Jul. 2021 50

Tunisia 25.05.2020 2020/701/EU 600.0 Ju. 2021 300 600.0

(Loan) May 2022 300

Georgia 25.05.2020 2020/701/EU 150.0 Nov. 2020 75 75.0 75.0

(Loan) (cancelled)

Moldova 25.05.2020 2020/701/EU 100.0 Nov. 2020 50 100.0

(Loan) Oct. 2021 50

Ukraine 25.05.2020 2020/701/EU 1 200.0 Dec. 2020 600 1 200.0

(Loan) Oct. 2021 600

Albania 25.05.2020 2020/701/EU 180.0 Mar. 2021 90 180.0

(Loan) Nov. 2021 90

Bosnia and Herzegovina 25.05.2020 2020/701/EU 250.0 Oct. 2021 125 125.0 125.0

(Loan) (cancelled)

Kosovo 25.05.2020 2020/701/EU 100.0 Oct. 2020 50 100.0

(Loan) Jun. 2021 50

Montenegro 25.05.2020 2020/701/EU 60.0 Oct. 2020 30 60.0

(Loan) Jun. 2021 30

North Macedonia 25.05.2020 2020/701/EU 160.0 Oct. 2020 80 160.0

(Loan) Jun. 2021 80

Moldova 06.04.22 2022/563/EU 150.0 Aug 2022 50 150.0

(Loan and Grant) May 2023 50

Dec 2024 50

Moldova 14.06.23 2023/1165/EU 145.0 Oct 2023 72.5 145.0 145.0

(Loan and Grant) Jul 2024 72.5

North Macedonia 12.07.23 2023/1461/EU 100.0 May 2024 50 50.0 50.0

(Loan)

Egypt 12.04.24 2024/1144/EU 1 000.0 Dec 2024 1000 1 000.0

(Loan)

Ukraine 28.02.2022 2022/313/EU 1 200.0 Mar. 2022 600 1 200.0

(Loan) May 2022 600

Ukraine 12.07.2022 2022/1201/EU 1 000.0 Aug. 2022 1000 1 000.0

(Loan)

Ukraine 20.09.2022 2022/1628/EU 5 000.0 Oct. 2022 2000 5 000.0

(Loan) Nov. 2022 2500

Dec. 2022 500

Ukraine 14.12.2022 2022/2463/EU 18 000.0 Jan 2023 3000 18 000.0

(Loan) Mar 2023 1500

Apr 2023 1500

May 2023 1500

Jun 2023 1500

Jul 2023 1500

Aug 2023 1500

Sep 2023 1500

Oct 2023 1500

Nov 2023 1500

Dec 2023 1500

Ukraine 28.10.24 2024/2733/EU 18 116.0 Jan 2025 3000 18 116.0

Mar 2025 1000

Apr 2025 1000

May 2025 1000

Jun 2025 1000

Jul 2025 1000

Aug 2025 1000

Sep 2025 1000

(Loan) Oct 2025 4000

Nov 2025 4116

Jordan 14.04.2025 2025/793/EU 500.0 Sept. 2025 250 250.0 (Loan)

Egypt 24.06.2025 2025/1267/EU 4 000.0 - - - 4 000.0

(Loan)

28

Annex 3: MFA amounts authorised 12 by year, 2008-2025 (EUR million) 13

MFA amounts authorised by year, 2008-2025 (EUR million)

MFA amounts authorised by region, 2008-2025 (%)

12 Authorised amounts refer to the amounts agreed to in the MFA Decisions, which may differ from the amounts disbursed

(Annex 4). 13 MFA+ is included for 2022.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total

By region

Accession and Pre-Accession 346.0 590.0 46.0 1 000.0 1 800.0 100.0 1 045.0 2 200.0 25 350.0 245.0 18 116.0 50 838.0

Neighbourhood East 100.0 100.0

Neighbourhood South 180.0 300.0 700.0 1 300.0 1 000.0 4 500.0 7 980.0

Other 30.0 30.0

Total amounts authorised 0.0 446.0 590.0 0.0 0.0 256.0 1 300.0 1 800.0 700.0 100.0 1 045.0 0.0 3 500.0 0.0 25 350.0 245.0 19 116.0 4 500.0 58 948.0

Loans 0.0 365.0 500.0 218.0 1 300.0 1 800.0 700.0 60.0 1 035.0 3 500.0 25 320.0 200.0 19 116.0 4 500.0 58 614.0

Grants 0.0 81.0 90.0 38.0 40.0 10.0 0.0 30.0 45.0 334.0

29

Annex 4: MFA amounts disbursed by year, 2008-2025 (EUR million)

MFA amounts disbursed by year, 2008-2025 (EUR million)

MFA amounts disbursed by region, 2008-2025 (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total

By region

Accession and Pre-Accession 25.0 15.3 100.7 120.0 30.0 100.0 1 360.0 873.0 623.0 520.0 30.0 1 440.0 1 115.0 7 250.0 18 122.5 172.5 18 115.7 50 012.7

Neighbourhood East 61.0 39.0 100.0

Neighbourhood South 15.0 25.0 380.0 400.0 400.0 250.0 550.0 300.0 200.0 1 000.0 250.0 3 770.0

Other 15.0 15.0 30.0

Total amounts disbursed 40.0 40.3 100.7 181.0 69.0 100.0 1 360.0 1 268.0 15.0 1 023.0 520.0 430.0 1 690.0 1 665.0 7 550.0 18 322.5 1 172.5 18 365.7 53 912.7

Loans 0.0 25.0 0.0 126.0 39.0 100.0 1 360.0 1 245.0 10.0 1 013.0 515.0 420.0 1 170.0 1 665.0 7 535.0 18290.0 1145.0 250.0 34 908.0

Grants 40.0 15.3 100.7 55.0 30.0 23.0 5.0 10.0 5.0 10.0 15.0 0.0 15.0 32.5 27.5 0.0 384.0

30

Annex 5: MFA outstanding principal amounts at the end of December 2025, and year of

first and last repayment, by country (EUR million)

Country

Outstanding principal

amount (EUR million), end

of 2025

Year of first repayment Year of last repayment

Albania 180.0 2035 2036

Armenia 65.0 2026 2026

Bosnia and Herzegovina 125.0 2036 -

Egypt 1 000.0 2036 2060

Georgia 133.0 2026 2035

Jordan 1 310.0 2025 2060

Kyrgyzstan 15.0 2029 2031

Moldova 360.0 2034 2039

Montenegro 60.0 2035 2036

N. Macedonia 210.0 2035 2038

Tunisia 1 400.0 2027 2037

Kosovo 100.0 2035 2036

Ukraine 47 125.7 2026 2071

-UA MFA before 2023 11 010.0 2026 2053

-MFA+ 18 000.0 2034 2054

-ERA MFA 18 115.7 2037 2071