Amount of funds received from European Commission by Moldova being ten times higher than monthly average of recent 1.5 years, says economist

Chisinau, 27 July /MOLDPRES/ – The amount of €14.5 million, equivalent up to MDL 284.7 million, received as grants from the European Commission (EC), is ten times higher than the monthly average of recent 1.5 years. Thus, economist Veaceslav Ionita has commented on his blog the entry of this amount of money into the account of the Ministry of Finance (MF), "which has come after a long, almost two – year period of suspension of financing".

According to expert, totally, the grants provided by the development partners have amounted up to MDL 417.6 mln since the beginning of 2019.

"After a period of 04 years of continuous reduction of grants obtained by Moldova, due to worsening of relations with the development partners, it is noticed firstly a significant increase of financing. We have all the clues that the financing will continue within upcoming months," says Veaceslav Ionita.

He adds that in 2018 the historical minimum in terms of external support for the recent 12 years has been reached. The last time Moldova "received foreign assistance below the level of 2018, it was back in 2006, when the foreign assistance had amounted up to MDL 315 mln, compared to MDL 365 mln in 2018".

If we refer to Gross Domestic Product (GDP), the amount of the budget grants of the Government of Moldova in 2018 amounted up to 0.2 per cent, 15 times less than in 2014, when the historic maximum of 3 per cent of GDP was reached, writes Ionita. Referred to GDP, the external support in 2018 was the lowest in recent 20 years. This low level can be compared only with 2003, during the period of external isolation promoted by the Communist leadership at that time. But then external support was higher than in 2018 and accounted for 0.3 per cent of GDP, specifies expert.