European Parliament approves macro-financial assistance of €150 million for Moldova

CHISINAU (Moldova), March 24 (SeeNews) – The European Parliament (EP) announced on Thursday that it will provide 150 million euros ($165 million) in macro-financial assistance to Moldova to help it cover part of of its external financing needs.

The €120 million in loans and €30 million in grants will be disbursed in three installments until 2024, with the first installment scheduled for this summer, the EP said in a press release.

For the money to be disbursed, Moldova must show good progress in implementing a macroeconomic program put in place by the International Monetary Fund (IMF), the EP said.

Moldova also needs to put in place additional policy measures to be co-signed with the EU to, inter alia, recover assets lost after bank fraud in 2014, reform public financial management, the justice sector, public procurement and improving labor rights.

According to the deputies, the reformist government of Moldova, in place for almost a year, has started to work on good governance and justice and has intensified the fight against corruption. However, Moldova’s economy has been hit by the COVID-19 pandemic and a summer drought that caused the country’s economy to contract by 7%, which was exacerbated by a gas dispute with Russia’s Gazprom. in 2021, they added.

“Even though Moldova has already taken some steps to fight corruption, organized crime and illicit financial flows, there is still room for further reforms, especially in democratic institutions, decentralization, establishment of public administration and the depoliticization of public institutions in the fight against corruption”, said the rapporteur. Marketa Gregorova is quoted as saying: “Currently, Moldova is feeling the impact of the war next door, which has driven up energy prices and led to additional costs. Therefore, the current macro-financial assistance is no longer sufficient to cover the financing gap. I therefore welcome the Commission’s efforts to find other ways to help Moldova stabilize its economy.”

Moldova is covered by the European Neighborhood Policy and is therefore eligible for macro-financial assistance. Since 2010, the EU has provided €190 million through this type of aid to Moldova.

($=0.9103 euro)