The EBRD has approved a new Country Strategy for Moldova for 2023-2028.
This was announced by the European Bank for Reconstruction and Development, noting that this document, approved by the Board of Directors of the EBRD, determines the investment and political work of the bank with the candidate country for joining the European Union for the next 5 years. At the same time, the three strategic priorities of the EBRD for Moldova for 2023–2028 will be: to improve energy resilience and security and promote a greener economy; supporting competitive and inclusive private sector development, more sustainable financial infrastructure and better governance; improving inclusive infrastructure to support growth and expand connectivity and trade. The EBRD notes that since the adoption of the previous Country Strategy in 2017, Moldova has made progress in adopting the policy principles on which the EBRD operates to facilitate the transition to an open market economy and encourage private and entrepreneurial initiative. Determined to promote reform, the Moldovan authorities have embarked on an ambitious reform agenda driven by Moldova's European aspirations to build institutions and infrastructure, fight corruption and strengthen the rule of law. However, progress was disrupted by the energy crisis and the war in Ukraine. Record energy prices (with gas prices tripling) and soaring inflation above 30% have put a significant strain on the economy, and a significant influx of refugees has further strained utilities and infrastructure. Against the backdrop of an increase in the state deficit, the macroeconomic situation worsened: in 2022, Moldova's GDP is projected to contract by 4.7%. “At a time of uncertainty for Moldova, the EBRD reaffirms its commitment to supporting the country, its economic resilience and its European aspirations in the clearest and most resolute way. Through its investments in the private sector and infrastructure and its support for the reform agenda, the EBRD confirms its role as the country's leading international player,” said EBRD President Odile Renaud-Basso. As noted, Moldova is one of the countries neighboring Ukraine, which received strong support from the EBRD in 2022 to protect the region's economy from the consequences of the war. One of the key investments was a €300 million loan last June to improve energy security through strategic gas acquisitions. With a record investment of over €500 million in 2022 focused on energy security and the private sector, the EBRD has demonstrated its unwavering commitment to the country in difficult circumstances. Together with the European Commission and other international partners, the EBRD is also investing in the EU-Ukraine Solidarity Corridors, strengthening key regional transport routes and strengthening trade links connecting Ukraine and Moldova to the EU. The EBRD is also actively involved in the multi-stakeholder Support Platform for Moldova, providing specific political, financial and technical assistance to help the country overcome the challenges it faces, especially those resulting from the war. The EBRD, the largest institutional investor in Moldova with a presence in the country over the past three decades, has invested 2 billion euros in the country, most of which is aimed at supporting infrastructure, as well as stabilizing the banking sector. //23.02.2023 — InfoMarket.
