The US will provide Moldova with $30 million in direct budgetary support to help the authorities cope with the sharp rise in energy prices.
This money will be allocated through the United States Agency for International Development (USAID). This assistance is critical as Russian pressure exacerbates Moldova's energy and financial problems, and is a key element of the $320 million emergency assistance the US has provided since February 2022 to help Moldova cope with economic, energy and humanitarian consequences of the war in Ukraine. It is emphasized that these funds, provided by the United States through the World Bank, will help Moldova in the process of recovering costs for previously made purchases of electricity. According to USAID, in recent years, Moldova has faced numerous shocks: the COVID-19 pandemic, a severe drought that damaged agricultural production, and the 2021 European gas crisis, which caused gas prices to rise by about 400%. While Moldova was just emerging from this series of severe shocks, the social and economic consequences of the war in Ukraine threatened the short-term recovery of the Moldovan economy and its long-term economic prospects. The World Bank has established a Multi-Donor Trust Fund to facilitate cash donations from international partners to help the Moldovan government meet these challenges. USAID said it will facilitate donor coordination and aid effectiveness, and help mobilize additional resources to meet critical needs and provide services in Moldova. This year marks 30 years of partnership between USAID and Moldova. More than $640 million has been invested in Moldova since 1992 through USAID assistance programs to strengthen democratic governance and economic growth, improve education and health outcomes, and meet urgent humanitarian needs, including those of refugees from Ukraine. // 06.01.2023 — InfoMarket
