The European Union and Bosnia and Herzegovina signed a memorandum of understanding on Thursday under which the country will be able to take a €250 million loan to limit the economic fallout of the coronavirus outbreak.

The loan will be disbursed in two tranches of €125 million each. The first tranche is expected after the entry into force of the memorandum of understanding and the accompanying credit line agreement.

Finance Minister Vjekoslav Bevanda said that the purpose of this macro-financial assistance was to mitigate the consequences of the crisis caused by the coronavirus pandemic.

“The most important thing is that we have managed to reach agreement within Bosnia and Herzegovina and that it is acceptable to the EU,” Bevanda said, thanking the EU for its readiness to help his country in these “highly challenging times”.