The European Commission approves the allocation of new macro-financial assistance to Moldova in the total amount of 150 million euros
As noted in the statement released on Tuesday, at the request of Moldova, the European Commission adopted a proposal on a new operation of macro-financial assistance in the amount of up to 150 million euros, of which up to 30 million euros will be provided to our country in the form of grants, and up to 120 million euros - in the form of medium-term loans on favorable terms of financing. “Along with the new IMF program, this proposed new macro-financial assistance will provide both grants and loans at favorable rates to help bolster the Moldovan economy over the next two years. As always, this funding will be subject to political commitments to address some of the the most pressing problems affecting the economic development of Moldova ", - European Commissioner for Economic Affairs Paolo Gentiloni. It is noted that the new EU macro-financial assistance program will be a continuation of previous initiatives, within the framework of which the European Union has allocated a total of 160 million euros to Moldova, since 2017. It is noted that Moldova still faces many problems, in particular with the need to solve the problems of corruption and management that contributed to the weakening of the financial situation and balance of payments over the past few years, which has attracted support from international partners. Moldova faced a serious energy crisis last year, which, combined with the recovery from the pandemic, has further implications for the country's economic stability and future prospects. The EU's proposed new macro-financial assistance package requires approval by the European Parliament and the EU Council before it can take effect and disbursements can be made. This macro-financial assistance package will complement the new IMF program for Moldova, approved on December 20, 2021. Disbursements under the proposed new EU macro-financial assistance package will strictly depend on good progress in the IMF program and on the fulfillment of specific political conditions that will be agreed between Moldova and the EU in Memorandum of Understanding. The terms will be in line with Moldova's commitments under the program agreed with the IMF and the World Bank, as well as EU budget support operations and the Moldova-EU Deep and Comprehensive Free Trade Agreement (DCFTA). Financial support to Moldova, including a macro-financial assistance program, is provided by the EU in accordance with the Association Agreement. The new aid will be paid in three installments between 2022 and 2024. This macro-financial assistance package came shortly after the grant of € 60 million to Moldova to support the budget in response to the energy crisis, as well as under the EU Economic Recovery and Resilience Plan for Moldova in the amount of up to € 600 million over the next three years. // 04.01.2022 - InfoMarket.
