Albania's government said it has approved a Euro 180 million (Dollar 212.2 million) financial package from the European Union aimed to help the Western Balkans country limit the economic fallout from the coronavirus (Covid-19) pandemic.

The loan agreed in early August will be used to strengthen public finance and the resilience of the financial sector, improving governance and fighting corruption, and enhancing social protection, the government said in a statement on Wednesday.

The agreement is part of a Euro 3 billion macro-financial assistance package agreed between the EU and ten enlargement and neighborhood partners, including Albania, Kosovo, Montenegro and North Macedonia.

The package foresees Euro 100 million for Kosovo, Euro 60 million for Montenegro and Euro 160 million for North Macedonia.

The ongoing and swift implementation of these programs is an important demonstration of the EU's solidarity with these countries at a time of unprecedented crisis.

The agreements provide for the policy actions to which the beneficiaries commit in order to receive the second tranche of assistance. This is an important step towards the first disbursement under the program, which is conditional on fulfilling the political pre-conditions, including the respect of democratic principles, human rights and the rule of law. Beneficiary countries should also benefit from an IMF financial assistance program.

The macro-financial assistance is part of the EU's wider engagement with neighboring and enlargement countries and is intended as an exceptional EU crisis response instrument. It is available to enlargement and EU neighborhood countries experiencing severe balance-of-payments problems. It demonstrates the EU's solidarity with these countries and the support of effective policies at a time of unprecedented crisis.

The Decision on providing macro-financial assistance to ten enlargement and neighborhood partners in the context of the Covid-19 pandemic was proposed by the Commission on 22 April and adopted by the European Parliament and the Council on 25 May 2020.

In addition to macro-financial assistance, the EU supports the Neighborhood and Western Balkans through several other instruments, including humanitarian aid, budget support, thematic program, technical assistance, blending facilities and guarantees from the European Fund for Sustainable Development to support investment in sectors most affected by the Covid-19 pandemic.