CHISINAU (Moldova), January 13 (SeeNews) – The European Commission said on Friday it has proposed a Macro-Financial Assistance (MFA) programme of up to 100 million euro ($106.5 million) to Moldova, to support the country in meeting its short-term financing needs.
“This assistance will help Moldova meet its most immediate financing needs and stabilise its economy. At the same time, we are confident that the conditions related to this financing will contribute to improving economic governance in the country and encourage vital reforms,” European Commission vice-president Valdis Dombrovskis said in a press release, posted on the Commission’s website.
The MFA is subject to adoption by the European Parliament and the Council.
If the programme is adopted, up to 40 million euro would be provided in grants and up to EUR 60 million in medium-term loans at favourable financing conditions, the Commission said.
The MFA would accompany the country’s three-year funding arrangements with the IMF, which amount to $178 million, under the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF).
Disbursements under the proposed MFA programme would be strictly conditional on good progress with the IMF programme and on the implementation of specific policy conditionality to be agreed between Moldova and the EU in a Memorandum of Understanding.
($ = 0.9393 euro)