The Republic of Moldova will benefit from macro-financial assistance worth 150 million euros from the European Union. The deputies voted in the first reading the ratification of the Memorandum of Understanding between Moldova and the EU. The document was supported by 55 deputies. It awaits the vote in the second reading. The BCS and ȘOR factions announced that they will not support the project.
The European Union’s macro-financial assistance has two components: EUR 30 million – grant and EUR 120 million – loan. The financial assistance will be provided to cover the budgetary needs of the Republic of Moldova. It is complementary to the resources provided by international financial institutions and donors for the country’s reform program.
The key areas of the funded reforms are the energy sector, the fight against corruption, the rule of law, the governance of the financial and public sector, and the business climate. The financial assistance is for two and a half years. It will be disbursed in three installments, in the period 2022-2024.
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The implementation of the provisions of the Memorandum requires the ratification of the Grant Agreement on Macro-Financial Assistance (EUR 30 million). Moreover, it requires the Loan Facilitation Agreement between Moldova, the EU and the National Bank of Moldova (EUR 120 million). The two drafts passed in the first reading on Thursday.
The European Parliament and the EU Council adopted in April 2022 the decision on providing macro-financial assistance to Moldova. It happened in the context of the consequences of the invasion of the Russian Federation in Ukraine, gas crisis management and recovery from the Covid-19 pandemic.