May 11 (SeeNews) - The European Parliament (EP) said that it decided to topup the ongoing macro-financial assistance to Moldova by up to 145 million euro ($158.9 million) to help the country cover part of its funding needs for 2023.
The support, consisting of 45 million euro in grants and up to 100 million euro in loans, will be disbursed in two instalments in the third and fourth quarters of 2023, provided Moldova meets certain policy conditions, the EP said in a press release on Wednesday.
In order to access the aid, Moldova must enact justice system reforms ensuring the rule of law and the fight against corruption, while making progress in implementing an International Monetary Fund macroeconomic programme.
In April, the European Commission (EC) disbursed a second instalment of 50 million euro under a 150 million euro Macro-Financial Assistance (MFA) operation to help Moldova address its urgent financing needs and support overall economic activity. The newly approved financial aid brings the total amount of the EU’s ongoing MFA support to 295 million euro.
The financial assistance is set against the backdrop of Russia’s invasion of Ukraine, which contracted the Moldovan economy and created an uncertain economic environment that negatively affected investment and trade in the country. The energy crisis coupled with a fall in household consumption and investment also affected Moldova’s public finances, while the sharp rise in energy prices fuelled inflation.