Moldovan Parliament approved in the first reading the ratification of a Memorandum and agreements with the EU on new macro-financial assistance worth 150 million euros.
In particular, the MPs approved in the first reading a draft law on the ratification of the agreement on a credit line between Moldova, the European Union and the National Bank of Moldova on macro-financial assistance for Moldova worth 120 million euros, a draft law on the ratification of a grant agreement between the RM and the EU on macro-financial assistance for Moldova and a draft law on the ratification of a memorandum-agreement between the RM and the EU on macro-financial assistance for Moldova. All three documents were signed in Brussels on June 22, 2022, and stipulate that Moldova will receive from the EU, under the new macro-financial assistance, 120 million euros in preferential loans and 30 million euros in grants. As reminded by Minister of Finance Dumitru Budianschi, on April 6, the European Parliament and the Council of the European Union decided to grant additional macro-financial assistance to Moldova for the recovery of its economy hit by the war in Ukraine and the pandemic, as well as for the management of the gas crisis that began in October 2021. The memorandum of agreement between Moldova and the EU on macro-financial assistance provides a list of 15 conditions that the country must meet to receive assistance from the European Union. The money will be allotted in three equal tranches of 50 million euros, with the first tranche consisting of a 35 million euro credit and a 15 million euro grant, the second - a 40 million euro credit and a 10 million euro grant, and the third - a 45 million euro credit and a 5 million euro grant. EU financial assistance will be provided between 2022 and 2024, starting from the first day after the entry into force of the Memorandum of Understanding. The allocation of the tranches will depend on the progress of the implementation of the provisions of the Memorandum and other agreements between Moldova and the EU. There are three conditions for the first tranche, and six conditions each for the second and third tranches. The macro-financial assistance will contribute to Moldova's economic recovery by promoting a set of policy measures. The main reforms are focused on the energy sector, the fight against corruption, the rule of law and the business climate. The money will also be used to cover the budgetary needs of our country. The concessional loans within the EU macro-financial assistance will be provided to Moldova for 15 years, and the interest rate for each tranche will depend on the cost of borrowing by the European Commission on the international financial market. Finance Minister Dumitru Budianschi said that, according to rough estimates, the interest rate for all tranches of macro-financial assistance will be 1.5%. According to him, in this case, Moldova will return 26 million euros in addition to the principal amount of the loan in the form of interest for the entire period. But taking into account that Moldova will get 30 million euros in a grant, the loan will be interest-free, very profitable. // 07.07.2022 - InfoMarket
