January 25 (SeeNews) - The European Commission said that it is proposing to increase the Macro-Financial Assistance (MFA) offered to Moldova by up to 145 million euro ($158 million), bringing the total amount to 295 million euro.
The funding will help Moldova implement its reform agenda, while withstanding the fallout of Russia's war in Ukraine, the EU's executive body said in a press release on Tuesday.
Of the proposed additional amount, up to 45 million euro will be provided in grants and up to 100 million euro in loans at favourable financing conditions, the Commission said. The proposal would accompany Moldova's ongoing International Monetary Fund programme.
The additional disbursements under the proposed MFA increase would be strictly conditional on satisfactory progress with the International Monetary Fund programme and on the implementation of new policy conditions to be agreed between Moldova and the EU, the Commission noted.
"These policy conditions would aim to address some of the fundamental weaknesses exposed in recent years in the Moldovan economy and economic governance system, and in other key areas, including good governance and fight against corruption, the rule of law, and energy security."
It is now for the European Parliament and the Council to consider and adopt the proposal to increase the ongoing MFA to Moldova. The country benefits from an ongoing MFA operation which entered into force on 18 July 2022.