The European Commission has approved a financial support package of €72.5 million to aid the Republic of Moldova as part of the ongoing Macro-Financial Assistance (MFA) operation. This initiative will provide essential financial assistance to the country, which has been grappling with economic challenges resulting from Russia’s invasion of Ukraine and ongoing energy security concerns.
Yesterday, Moldova received €50 million as a loan, and an additional payment of €22.5 million in grants will follow by the end of the month. This financial assistance aims to help Moldova meet part of its additional funding requirements for 2023, maintain macroeconomic stability, facilitate ongoing reforms, and support the country’s path toward European integration. It complements the existing International Monetary Fund (IMF) program for Moldova.
The disbursement of this support follows the European Commission’s assessment that Moldova has fulfilled the necessary policy commitments agreed upon with the EU. Moldova has made notable progress in addressing energy security concerns by adopting a dedicated action plan for the upcoming winter, a crucial step given the ongoing challenges in this area. The country has also improved public sector governance and made advancements in the rule of law, particularly in filling positions within the Superior Council of Magistrates and the Superior Council of Prosecutors. Additionally, Moldova has taken significant strides in enhancing its business climate by implementing a new entrepreneurship program and a digitalization transformation strategy.
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The ongoing Macro-Financial Assistance operation to Moldova totals up to €295 million, consisting of €220 million in loans and €75 million in grants. In June 2023, the European Parliament and Council approved a top-up worth up to €145 million for this operation, of which €72.5 million will be disbursed to Moldova by the end of October.
By the end of the month, Moldova will have already received €172.5 million under this operation. Further payments will be made based on the country’s progress in meeting the agreed policy conditions. This financial support underscores the EU’s commitment to aiding Moldova during these challenging times and facilitating its journey towards European integration.