The Council of the European Union has finally approved the setting up of the 1.9-billion-euro Reform and Growth Facility for Moldova
The EU Council announced this, noting that the 1.9-billion-euro package is the largest EU financial assistance package since Moldova's independence and complements the EU's other substantial assistance to Moldova. It will stimulate Moldova's economy and will bring the country closer to the EU membership by speeding up the reforms. It will also help Moldova cope with the problems caused by Russia's war of aggression against Ukraine and Russia's constant attempts to destabilize the country. Poland's European Affairs Minister Adam Szłapka said the EU will help Moldova advance key socio-economic reforms, boost its economy and accelerate the country's accession to the EU. The new instrument will also “strengthen Moldova's resilience by mitigating the effects of Russia's unjust aggression against Ukraine.” The Facility is the financial backbone of Moldova's Growth Plan, presented by the European Commission in October 2024. It will support Moldova in 2025-2027 and is expected to provide up to 385 million euros in grants and 1.5 billion euros in loans. These loans will be highly concessional, with long repayment periods and favorable interest rates. Disbursements will be subject to strict conditions in terms of achieving the reforms set out in the agreed Reform Program. The Facility will support Moldova in implementing EU-related reforms, as well as in accelerating growth and achieving economic convergence with the EU. It will cover all sectors that are vital to promoting Moldova's economic growth and its integration into the EU single market. The Facility will also play an important role in the implementation of the EU's Integrated Strategy for Moldova's Energy Independence and Resilience, which aims to decouple Moldova from the unreliability of Russian energy supplies and fully integrate the country into the EU energy market. The funds will be disbursed twice a year based on requests from the Moldovan government and after verification by the European Commission that all relevant conditions set out in the Reform Program have been met. The Regulation on the creation of the Reform and Growth Facility for Moldova will now be signed by the Presidents of the EU Council and the European Parliament, published in the Official Journal of the EU and will enter into force the next day. It should be noted that on October 10, 2024, the European Commission presented Moldova's Growth Plan, which is based on three pillars: supporting Moldova's socio-economic and fundamental reforms, enhancing Moldova's access to the EU single market and increasing financial assistance for 2025-2027 through a dedicated Reform and Growth Facility for Moldova. The European Parliament and the EU Council reached a preliminary agreement on a 1.9-billion-euro Reform and Growth Fund for Moldova on February 19, 2025, and on March 11, the European Parliament approved a new Support Plan for Moldova with funding of 1.9 billion euros. // 18.03.2025 - InfoMarket.
