Brussels, 14 March 2022
- €150 million to cover for a part of the financing gap worth 1.2% of GDP
- Reform-oriented government has access to funding conditionally
On Monday, trade MEPs agreed to provide Moldova a €150 million macro-financial loan to cover a part of its external financing needs.
The trade committee thus endorsed the proposal of the Commission that sought to give the assistance to help Chisinau stabilise its economic situation. The €120 million in loans and €30 million in grants will be paid out in three instalments.
For the money to be disbursed, the country must show good progress in implementing a macroeconomic programme set up by the International Monetary Fund (IMF) and additional policy measures to be signed with the EU about, among others, asset recovery after a 2014-bank fraud, reforms of the public finance management, justice sector, public procurement and improvement of labour sector rights. Rapporteur Markéta Gregorová (Greens/EFA, CZ) emphasized the importance of Moldova’s respect of all conditions.
The draft resolution passed with 37 votes for, 0 against and 2 abstentions.
Moldova found political stability after parliamentary elections last July and its new reform oriented government has started to carry out the necessary reforms. However, the COVID-19 pandemic and a drought in the summer resulted in a 7% contraction of its economy last year, exacerbated by a recent gas crisis. The country has to improve its governance and step up its fight against corruption.
Background
Moldova is covered by the European Neighbourhood Policy and thus is eligible for macro-financial assistance. Since 2010, the EU has provided €190 million of this assistance to Moldova.
The IMF identified a $480 million (€440 million) gap in Moldova’s financing needs for 2022.
Further information