The European Commission has allocated a grant of 75 million euros to Moldova to support the budget in order to mitigate the consequences of rising energy prices.
This was told by the Deputy Director General of the Directorate General for Neighborhood and Enlargement Negotiations of the European Commission Katarina Mathernova. “The European Commission continues to support Moldova in a difficult energy situation, with rising gas prices for the most vulnerable and the need to improve energy efficiency. The European Commission's Directorate-General for Neighborhood and Enlargement Negotiations allocated 75 million euros today for budgetary support,” Katarina Mathernova tweeted. It should be noted that the allocation of a grant of 75 million euros to Moldova to mitigate the socio-economic consequences of rising energy prices is envisaged by the signed on July 21 this year Amendment N1 to the Financing Agreement between the Government of Moldova and the European Commission under the “State Consolidation and Resilience Contract for the Republic of Moldova”, concluded in Brussels on December 15, 2021. The signed amendment provides that the total amount of this budgetary assistance will be 135 million euros. The first tranche of €60 million was paid on December 24, 2021, while the remaining €75 million will be disbursed after certain conditions are met. In particular, the government needed to make progress in mitigating the socio-economic impact of rising gas prices, strengthening the government's capacity to provide personalized services to vulnerable populations, and supporting socio-economic recovery. In addition, it is necessary to maintain macroeconomic policies aimed at achieving stability or progress in restoring key balance sheets, making progress on reforms that will improve public financial management, including domestic revenue mobilization, and making progress in making budget information available to the public. As InfoMarket agency reported earlier, on August 1, the European Commission allocated the first tranche of 50 million euros from a new macro-financial assistance to our country in the amount of 150 million euros. At the same time, 35 million euros were provided in the form of long-term loans on favorable terms, and 15 million euros - in the form of grants. This was the first disbursement under the new EU macro-financial assistance package for Moldova, which entered into force on July 18, 2022 and is available for 2.5 years. The macro-financial assistance is part of a larger EU and international donor support program for Moldova to help it weather multiple crises as part of the inter-ministerial Moldova Support Platform, launched on April 5 in Berlin. // 16.08.2022 — InfoMarket
