The Republic of Moldova will benefit from a macro-financial assistance operation of €150 million in the form of loans and grants provided by the European Union. Parliament gave a final reading to the bill to amend the Memorandum of Understanding between Moldova and the EU that was signed in Brussels on June 22, 2022, IPN reports.

Minister of Finance Dumitru Budeanschi said the financial assistance will help Moldova cover, in 2022-2024, part of its residual external financing needs and will contribute to strengthening Moldova’s resilience in the current geopolitical context and covering Moldova’s balance of payments needs as identified. It intends to support Moldova’s economic stabilization and reform agenda, primarily in the energy sector, corruption fighting, the rule of law, financial and public sector governance and business climate. 

The disbursement is expected to take place in three tranches to be released between 2022 and 2024. Of the total amount, up to €120 million shall be provided in the form of medium- to long-term loans at favorable financing conditions and up to €30 million in the form of grants.

For the memorandum to be applied, the agreement on the provision of €30 million in the form of grants and the loan facilitation agreement between Moldova, the EU and the National Bank of Moldova for the €120 million also need to be ratified. The two bills were given a first reading today.

In the same sitting, the MPs gave a first reading to the bill to ratify the loan contract with the French Development Agency. The contract is for a loan in the amount of €15 million at a fixed interest rate of 1.38% per annum, with a maturity of 15 years, including a five-year grace period. The bills are to be given a final reading.