Reform and Growth Facility for the Western Balkans

Financial support and reforms

The Reform and Growth Facility regulation entered into force on 25 May 2024.

Financial support under the Facility will only be disbursed upon the successful implementation of reforms by the beneficiaries. Each beneficiary has to prepare a Reform Agenda, which is consulted, assessed and approved by the Commission following positive assessment by the Council.

How will the Facility work?

At least 50% of the total amount (grants and loans) will go to investments through the Western Balkans Investment Framework (WBIF). The remaining amount of loans will be channelled to the treasuries of the beneficiaries.

The key to how the EU funds are divided among beneficiaries is determined in the Annex to the Reform and Growth Facility regulation.

Payments from the Facility

In the Reform Agenda, reforms are split into quantitative and qualitative steps, which serve as payment conditions, and each step has a timeline of implementation.

Payments from the Facility are subject to strict conditionality. There are three sets of conditions: preconditions, general conditions and payment conditions:

• Pre-conditions need to be fulfilled at all times, namely that the beneficiaries continue to uphold and respect democratic mechanisms. Serbia and Kosovo need to engage constructively in the normalisation of their relations, as a specific pre-condition.
• General conditions include macro-financial stability, sound public financial management, transparency and oversight of the budget.
• Payment conditions are specific to each beneficiary and defined in the Reform Agendas.

Payments are done twice a year, based on requests submitted by the partners and following verification by the Commission of the achievement of the relevant payment conditions and fulfilment of general conditions and pre-conditions.

In case necessary conditions are not met, the Commission will suspend or deduct a corresponding amount from the payment.

Beneficiaries can request the release of a pre-financing of up to 7% of their total allocation foreseen under the Facility. The disbursement of the Reform and Growth Facility funds is subject to the entry into force of a Facility Agreement and a Loan Agreement that the Commission concludes with each beneficiary.

Reform and Growth Facility Scoreboard

The scoreboard below displays the progress in the implementation of the Reform and Growth Facility, including the steps fulfilled and the amounts disbursed. 

Open full screen version of the Scoreboard