European Commission disburses €50 million in macro-financial assistance to Moldova
CHISINAU (Moldova), August 1 (SeeNews) – The European Commission (EC) announced on Monday that it has disbursed the first tranche of 50 million euros ($51.3 million) under a macro-financial assistance program (AMF) to help Moldova meet its urgent needs. financing needs and support overall macroeconomic stability.
Of the total tranche, €35 million will be provided in the form of long-term loans on concessional terms and €15 million in the form of grants, the Commission said in a press release.
This is the first payment under the new MFA of 150 million euros for Moldova, which entered into force on July 18 and is available for two and a half years.
According to the Commission, “Russia’s unwarranted war of aggression against Ukraine has had a significant impact on the Moldovan economy, adding to significant pre-existing challenges and imbalances”.
The pandemic has caused a deep recession in Moldova in 2020, while the gas crisis that started in the fall of last year has put additional budgetary pressures, the Commission noted, adding that despite being one of the poorest countries in Europe, Moldova has received the highest per capita number of people fleeing Ukraine.
The ongoing aggression has also caused major trade disruptions, weighing on Moldova’s external position, while soaring inflation further undermines the already vulnerable economic outlook, the Commission said.
The EU’s executive body also underlined that Moldova continues to meet the preconditions with regard to respect for human rights, effective democratic mechanisms and the rule of law, as well as having a positive results in the implementation of the ongoing program of the International Monetary Fund (IMF).
In May, the IMF announced that it had approved an immediate disbursement of $144.8 million to Moldova to help the country meet urgent war-induced balance of payments financing needs.
On June 23, the European Council decided to grant EU candidate status to Moldova and Ukraine.
YOU CAN SUBSCRIBE TO OUR WAR IN UKRAINE IMPACT ON SEE THE NEWSLETTER HERE