EU grants €4m to alleviate poverty in Moldova

The European Commission has granted €4 million (65.6 million MDL) to Moldova to tackle chronic poverty and focus on the needs of the most deprived population. The grant is allocated through the Commission's Food Security Programme 2006 and was transferred to the National Bank of Moldova. The grant further contributes to encourage the development of a more productive agricultural sector contributing to economic growth, thus promoting long-term food security, a stable supply of food, and secure incomes for rural farming populations. It also supports the development of a well-targeted social safety net, with a view to alleviating poverty and food insecurity at the household level for the most vulnerable segments of the population. The total amount of the Food Security Programme 2006 for Moldova is €9.2 million (approximately 152.5 million MDL). €1.2 million were already transferred into the Moldovan Treasury Account in October 2006 and the remaining part can be expected before the end of 2007. The Food Security Programme has already financed government reforms on the public finance management system, child protection, social assistance domains, elaboration and approval of the concept of Internal Audit in coherence with the objectives and actions agreed in the EU-Moldova Action Plan. Within the agriculture sector, the government has undertaken, with the support of the European Commission a number of reforms aiming at increasing competitiveness of the sector. These include: further extension of small-scale irrigation schemes near to the Prut and Nistru Rivers to be, used for high value agriculture production – fruits and vegetables – further reform of the state veterinary service, including an enabling environment for private veterinary services and enhanced provision, through the Community Development Programme of the Social Investment Fund, of potable water and sanitation in rural areas.