EU commission to increase support to Moldova

The European Commission has proposed increasing ongoing financial assistance to the Republic of Moldova by up to €145 million, bringing the total amount of support to €295 million. The proposal is intended to support Moldova as it continues to implement its reform agenda while also dealing with the consequences of Russia’s war in Ukraine, an energy crisis, and hosting a high number of refugees from Ukraine. The proposal follows a previous announcement made by President von der Leyen in November 2022 regarding additional financial support to Moldova.

The additional assistance aims to support Moldova, whose economy has been severely impacted by the consequences of Russia’s invasion of Ukraine and a significant energy crisis. The increase in financial assistance would help the country cover part of its additional funding needs in 2023, support macroeconomic stability and provide for further reforms. The proposal will accompany Moldova’s ongoing International Monetary Fund program.

The two additional disbursements under the proposed increase in financial assistance would be strictly conditional on satisfactory progress with the International Monetary Fund program and on the implementation of new policy conditions to be agreed upon between Moldova and the EU. These policy conditions aim to address fundamental weaknesses in the Moldovan economy and economic governance system, as well as in other key areas such as good governance, fighting corruption, the rule of law, and energy security. The conditions would be complementary to Moldova’s commitments under the program agreed with the International Monetary Fund and World Bank, as well as the EU budgetary support operations, the Association Agreement, and the overall objectives of EU-Moldova relations.

Out of the additional €145 million, €45 million would be provided in grants and €100 million in loans with favorable financing conditions. The amount will be disbursed in two additional instalments planned for the third and fourth quarters of 2023, provided that policy conditions are fulfilled.

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