European Commission approves marcofinancial assistance worth 100 million euros for Moldova

Chisinau, 12 April /MOLDPRES/ - The European Commission today approved the initiation of negotiations on a macro-financial assistance worth 100 million euros for Moldova.  

“On 12 April, the EU ambassadors agreed on the position of macro-financial support for Moldova. The macro-financial assistance represents a financing operation worth up to 100 million euros, of which 60 million euros is to be provided as loan and 40 million euros as grant,” reads a press release by the European Commission.  

This financial assistance will help Moldova fulfill its immediate needs in terms of financing and stabilize its economy. The financing offered by EU will contribute to the improvement of the country’s economic governance and will encourage the carrying out of the vital reforms, as well as will cover the needs in foreign financing for the next two years.   

The European Commission’s decision is to be approved by the European Parliament and will make the financing available. The EU assistance makes the object of a memorandum of understanding, including the accurate and specific conditions, which are to be agreed upon by Moldova and the European Commission. A preliminary condition would be that Moldova observes the rule of law state and guarantees the observance of human rights. The objectives also include the efficiency, transparency and responsibility of public money management, an efficient prevention of corruption and money laundering, as well as the governance and supervision of the financial sector, the European Commission’s communiqué also reads.   

The cabinet of ministers, at a today’s meeting, is to adopt the decision on starting negotiations on a draft financing agreement between Moldova and the European Union as for macro-financial assistance. The group of negotiators will be led by Finance Minister Octavian Armasu.     

The European money will be used “to overcome the economic shock triggered by a worsening of the budgetary stance and the balance of payments, as a result of the major banking fraud from November 2014, as well as the reduced exports and transfers of funds, caused by the recession at some regional trade partners of Moldova.” Also, the EU assistance will lead to the promotion of macroeconomic stability and structural reforms in Moldova, “strengthening the government’s commitment in favour of the reform and its aspirations towards a closer relation with EU,” as well as to the improvement of the public money management.    

The sum of the 60-million-euros loan will be earmarked in three installments, “depending on the progress made in implementing the provisions of the memorandum with IMF and the conditions due to be agreed upon between Moldova and the European Union.” The loan will be provided for a period of up to 15 years. The interest rate for each installment will depend on the cost the European Commission borrows money on the international financial market. 

(Reporter V. Bercu, editor A. Raileanu)