European Commission proposes macro-financial assistance worth 150 million euros for Moldova

Chisinau, 4 January /MOLDPRES/ - The European Commission today adopted a proposal on new action of macro-financial assistance (AMF) for Moldova, worth up to 150 million euros; 30 million euros of this money is to be provided in form of grants and up to 120 million euros – as medium-term loans, on easy terms, the government’s communication and protocol department has reported.

The new AMF is to be approved by the European Parliament before its entrance into force and before making the payments.  

European Commissioner for Economy Paolo Gentiloni said: „The European Commission continues to be by the side of the people of Moldova in these particularly difficult times. Along with the new programme of IMF, this new proposal of macro-financial assistance would provide both grants and loans at favourable interest rates, in order to support the Moldovan economy in the next two years. As each time, this financing would be conditioned on the fulfillment of commitments of policies, meant to approach the most pressing problems which hit Moldova’s economic development.’’

The AMF assistance is meant to complete a new programme, approved by the IMF Board on 20 December 2021, agreed upon between Moldova and the International Monetary Fund. In particular, AMF will help Moldova cover a part of its needs of foreign financing in the next years. The operation will thus contribute to reducing the balance of payments for short term and the economy’s fiscal vulnerabilities.   

The new assistance is to be paid in three installments between 2022 and 2024.

The payments made within AMF will be strictly conditioned by significant progress as regards the programme with IMF and enforcement of the conditionality of specific policies, which are to be agreed upon between Moldova and EU through a memorandum of understanding. These political conditions will have the goal to solve fundamental deficiencies set forth in the last years in the economy and economic governance system from Moldova, as well as in other key fields, including the good governance and fighting corruption, rule of law state and energy security. The conditions will be in accordance with Moldova’s commitments within the programme agreed upon with IMF and the World Bank, as well as with the EU’s budgetary support operations and the Deep and Comprehensive Free Trade Agreement.