European Commission will allocate 40 mln EUR to Moldova in the next 6 months to help it overcome drought consequences

The European Commission will contribute nearly 40 mln EUR directly to the Moldovan State Budget in the next six months, provided that Moldova fulfils commonly agreed conditions. The first 20 mln EUR will be disbursed in September 2007. A second installment of at least 10 mln EUR can be disbursed in December 2007 or in early 2008. According to the Ministry of Agriculture and Food Industry, this assistance will help to cover immediate external financing needs and shortfalls in Moldova’s budget. In addition to this, 4 mln EUR of planned Food Security Programme budget support will be disbursed in December 2007, and the 5 mln EUR first installment of a 21 mln EUR budget support programme related to Social Assistance will be disbursed before the end of 2007. In a press release, the European Commission says that it is worried by the drought in the Republic of Moldova, and the impact it is likely to have upon the Moldovan people. Reports that farmers may lose their livelihoods are alarming. According to the EC, for the short-term response ECHO, the Commission’s humanitarian aid department, has dispatched an expert to Moldova on August 14, who accompanies the current FAO/WFPCrop and Food Supply Assessment Mission. ECHO will decide on a possible rapid intervention in the next days. The EC aid will be delivered in close co-ordination with EU member states, several of which - e.g. Czech Republic, Greece, Lithuania, Romania - have already pledged concrete drought aid to Moldova. Several more other EU member states are also considering a bilateral support, depending on the results of the WFP/FAO/ECHO-mission.