European Commission provides €72.5 million in financial support to Moldova
On 8 July, the European Commission made a €50 million loan on favourable terms available to Moldova. A further payment of €22.5 million in grants will follow by the end of this month.
According to the Commission, this financial support will help Moldova cover part of its 2024 financing needs, and support macroeconomic stability, while enabling further reforms.
“Its economy showed modest growth in 2023, after a deep recession in 2022. However, it remains impacted by Russia’s war of aggression against Ukraine and continues to face serious energy security challenges,” says a press release by the Commission.
This is the fourth instalment under the ongoing Macro-Financial Assistance to Moldova. It comes after the Commission concluded that the country has fulfilled the policy conditions agreed with the EU for the release of this disbursement. More specifically, Moldova has improved public sector governance and strengthened the independence of the National Bank of Moldova.
The country has also reinforced the rule of law, adopting a law on the extraordinary evaluation (i.e. full vetting) of judges. Progress has also been made in fighting corruption through better collaboration between anti-corruption and law enforcement agencies. The country also took steps to support renewable energy and reformed its Customs Code, which is now fully aligned to the Union’s Customs Code. In addition, Moldova has adopted the National Strategy for Economic Development, which formulates the vision of the country’s economic policy until 2030.
Macro-Financial Assistance is part of the wider EU effort to support Moldova up to €295 million in the wake of the multiple challenges over the last years. It will also help Moldova advance on its European path.
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