MEPs approve €145 million in additional assistance to Moldova
On Tuesday Parliament voted to top up macro-financial aid for Moldova by up to €145 million to help the country cover part of its funding needs in 2023.
MEPs endorsed the Commission’s proposal to give the Moldovan government support to stabilise the country’s economic situation, by 561 votes to 43, with 20 abstentions.
The support, totalling €45 million in grants and up to €100 million in loans, would be disbursed in two instalments planned for the third and fourth quarters of 2023, provided certain policy conditions are met by Moldova. These include justice system reforms, ensuring the rule of law and the fight against corruption, and good progress in implementing an International Monetary Fund (IMF) macroeconomic programme.
As a result of Russia's invasion of Ukraine, the Moldovan economy shrunk, and the uncertain economic climate has negatively affected investment and trade in the country. The energy crisis and a fall in household consumption and investment has put additional pressure on Moldova's public finances. In addition, the sharp rise in energy prices is creating high levels of inflation.