The EU provides 50 million euros in macro-financial assistance to the Republic of Moldova – The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology
This article is presented to you in association with the European Commission.
The European Commission, on behalf of the EU, has provided â¬ 50 million in macro-financial assistance (MFA) to the Republic of Moldova. This disbursement is part of the Emergency MFA of â¬ 3 billion for ten enlargement and neighborhood partners, which aims to help them respond to the economic impact of the COVID-19 pandemic. AMF support is provided through loans at very favorable rates. The program is a concrete demonstration of the EU’s solidarity with its partners to help respond to the economic impact of the COVID-19 pandemic.
Paulo Gentiloni, Commissioner for the Economy, said: âI am delighted that the European Union has disbursed an additional EUR 50 million in financial assistance to the Republic of Moldova. This is a concrete demonstration of the EU’s commitment to help Moldova cope with the economic and social impact of the COVID-19 pandemic. These funds, released following the fulfillment of agreed political commitments, recognize the progress made by the country in implementing the measures necessary to ensure a more stable and prosperous future.
The first disbursement of â¬ 50 million to Moldova under this MFA program took place in November 2020. Moldova has made remarkable progress in fulfilling the political conditions agreed with the EU for the release of this second and last disbursement of 50 million euros in the context of its current COVID-19. MFA program. These included important measures to improve public financial management in the health sector, the fight against corruption, measures to strengthen good governance and the rule of law, as well as to improve the business climate.
Moldova also continues to meet the preconditions with regard to respect for human rights and effective democratic mechanisms, including a multi-party parliamentary system and the rule of law.
With this disbursement, the EU has successfully completed five of the 10 MFA programs of the â¬ 3 billion AMF COVID-19 package and disbursed the first installments to all partners.
The Commission continues to work closely with the rest of its MFA partners on the timely implementation of agreed policy programs.
The MFA is part of the EU’s broader engagement with neighboring partners and enlargement partners and is intended to be an exceptional instrument for responding to crises. It is available to EU enlargement and neighborhood partners facing serious balance of payments problems. It demonstrates the EU’s solidarity with these partners and support for effective policies in a time of unprecedented crisis.
The decision to grant MFA to ten enlargement and neighborhood partners in the context of the COVID-19 pandemic was proposed by the Commission on April 22, 2020 and adopted by the European Parliament and the Council on May 25 2020.
In addition to the MFA, the EU supports partners in its neighborhood policy and the Western Balkans through several other instruments, including humanitarian aid, budget support, thematic programs, technical assistance, facilities mix and guarantees from the European Fund for Sustainable Development to support investments in the sectors most affected by the coronavirus pandemic.
The AMF COVID-19 program for Moldova is part of an overall EU effort to help mitigate the economic and social impact of the pandemic and accelerate the recovery. This commitment is in line with the EU-Moldova Association Agreement and the overall support of Team Europe, which builds on the joint efforts of EU Member States. Among others, Moldova was one of the first countries to benefit from the COVAX facility and the EU’s vaccine sharing mechanism, with more than one million doses of vaccines distributed throughout the country.
In addition, the AMF disbursement comes shortly after the release of budget support of 36.4 million euros as part of the EU economic recovery plan for Moldova, which can reach 600 million euros. euros for the next three years. In line with this plan and the economic and investment plan for the Eastern Partnership, the EU will continue to support Moldova on the path to full economic recovery and further implementation of reforms.