March 24 (SeeNews) - The European Parliament (EP) said on Thursday it will provide 150 million euro ($165 million) in macro-financial aid to Moldova to help it cover part of its external financing needs.
The 120 million euro in loans and 30 million euro in grants will be paid out in three installments until 2024, and the first tranche is planned for this summer, the EP said in a press release.
For the money to be disbursed, Moldova must show good progress in implementing a macroeconomic programme set up by the International Monetary Fund (IMF), the EP said.
Moldova also has to put in place additional policy measures to be co-signed with the EU to, among other issues, recover assets lost after bank fraud in 2014, reform public finance management, justice sector, public procurement and improve labour sector rights.
According to MEPs, Moldova’s reform-oriented government, in place for almost a year, has started work on good governance and justice and stepped up the fight against corruption. However, Moldova’s economy was battered by the COVID-19 pandemic and a drought in the summer that resulted in the country’s economy contracting by 7%, which was exacerbated by a gas dispute with Russia’s Gazprom in 2021, they added.
“Even though Moldova has already taken some measures to combat corruption, organised crime, and illicit financial flows, there is still scope for further reforms, notably in democratic institutions, decentralisation, setting up public administration and depoliticising public anti-corruption institutions," rapporteur Marketa Gregorova was quoted as saying. "Currently, Moldova is feeling the impact of the war next door, which has raised energy prices and brought additional costs. As a result, the present macro-financial assistance is no longer sufficient to cover the financing gap. I therefore welcome the Commission’s efforts to find other ways to support Moldova in stabilising its economy."
Moldova is covered by the European Neighbourhood Policy and thus is eligible for macro-financial assistance. Since 2010, the EU has provided 190 million euro through this type of assistance to Moldova.
($=0.9103 euro)