Moldova will receive additional macro-financial assistance from the EU in the amount of 145 million euros, of which 100 million euros will be concessional loans, and 45 million euros will be grants
This is provided for by the relevant annexes to the agreement on a credit line signed in Brussels on June 22, 2022 between Moldova, the European Union and the National Bank of Moldova, which were ratified by the Moldovan Parliament on July 31. It is planned that this financing will be provided by the end of this year in two equal tranches - 72.5 million euros each, where 50 million euros will be loan funds, and 22.5 million euros will be grants. The additional EU macro-financial assistance allocated to Moldova will be used to support the reform program of the authorities to solve the existing financial problems. Reforms will target the energy sector, the rule of law, the business climate, public administration, and the labor market, which will help advance institutional and governance reforms. It is stipulated that the payment of money will depend on the progress made in the implementation of the terms of the annex to the said agreement. The reforms will be implemented according to the policy matrix, which provides for 13 actions, 7 of them for the provision of the first tranche and 6 for the second. It is planned that in case of successful fulfillment of the conditions agreed with the EU, the first tranche of additional macro-financial assistance will be paid to Moldova in September, and the second - in December 2023. Credit resources will be allocated for a period of 15 years, and the interest rate for each tranche will depend on the cost borrowing of funds by the European Commission in the international financial market. As InfoMarket agency previously reported, the current EU macro-financial assistance package for Moldova entered into force on July 18, 2022 and provided for the provision of 150 million euros, including 120 million euros of concessional loans and 30 million euros of grants. At the same time, the first tranche of 50 million euros was allocated to Moldova by the European Commission in August last year. April 5 this year Moldova received a grant of 10 million euros from the European Commission within the second tranche of macro-financial assistance, and another 40 million euros in the form of loans was allocated to our country in early May. Herewith, the European Commission decided to increase the total amount of macro-financial assistance to Moldova from 150 million to 295 million euros. Additional macro-financial assistance from the EU will be aimed at supporting economic stabilization and the structural reform program in Moldova, complementing the resources provided under the IMF financing agreement. Of the total amount of 295 million euros, the EU will provide Moldova with up to 220 million euros in loans and up to 75 million euros in grants. The assistance will help cover the needs of Moldova's balance of payments, as defined in the IMF program.// 31.07.2023 – InfoMarket.
