Moldovan government ratifies Memorandum with EU on macro-financial assistance

Chisinau, 29 June /MOLDPRES/ - The cabinet has approved a draft law on the ratification of the memorandum of understanding between Moldova and the European Union, which envisages the providing of financial assistance worth 150 million euros, the government’s communication and protocol department has reported.   

A part of this sum, 30 million euros, is provided as grant and 120 million euros – as loan. In this respect, the cabinet of ministers at a today’s meeting approved the draft laws for the ratification of the agreement on grant and the loan facility agreement.  

This assistance will facilitate the economic recovery of Moldova through the promotion of a string of policies regarding such sectors as energy, rule of law state and fighting corruption, governance of the public sector and the business climate. The money will be allocated to cover the country’s budget needs.  

The financial assistance will be available during two years and a half starting from the day of the entrance into force of the Memorandum of Understanding and will be disbursed in three installments on the period 2022-2024. 

The Memorandum of Understanding between Moldova and EU on the macro-financial assistance was signed by Finance Minister Dumitru Budianschi, Governor of the National Bank of Moldova Octavian Armasu and European Commissioner for Economy Paolo Gentilone on 22 June 2022.

To enter into force, the memorandum is to be ratified by Moldova’s parliament.

The decision on the providing of macro-financial assistance to Moldova was adopted by the European Parliament and the EU Council on 6 April 2022, in the context of the consequences triggered by Russia’s invasion in Ukraine, as well as the management of the gas crises and economic recovery following the COVID-19 pandemic.   

Photo: Government