Moldovan PM provides details on Economic Growth Plan, he is to sign along with EU Commissioner for Enlargement on May 9

The Economic Growth Plan for Moldova, due to be signed by Prime Minister Dorin Recean and the European Union's Commissioner for Enlargement Marta Kos on May 9 represents the largest financial package allocated to the country. The PM provided more details on this document at the Good Evening show on the public television channel Moldova 1.

The financial resources amounting to 1.9 billion euros, stipulated in the Growth Plan, have been made available to Moldova, in order to build a prosperous life at home, Recean specified.

"It is important to note that we have never had so many financial resources for investments in our roads, in our schools, kindergartens, hospitals, local infrastructure, the business environment and agriculture. It is about 1.9 billion euros, made available to Moldova by our friends, by the European Union and its member states, so that we can build our life here at home," said Dorin Recean.

The prime minister emphasized that the financing was provided under advantageous conditions, and the European money would be used for the development of Moldova.

"As much as million euros out of this 1.9 billion-euro package is free financing, i.e.  grants and rest of 1.5 billion are loans. We have a grace period of 10 years, meaning that, during the first 10 years, we do not have to repay the rates. The total credit period is 40 years, so we have 40 years to use these credits and develop, and then repay them. The interest rates are very, very low. These are quite advantageous conditions for Moldova to use this money for development," Recean specified.

The most important benefit from implementing this plan, according to Recean, is the development of communities and infrastructure, with financial resources being used for investments and not for luxury.

"We will not do politics on debt, but we will invest this money in multiple projects, in 35 model schools, in regional hospitals, in hundreds of kilometers of roads. We will be able to use this money to build our lives today. We can no longer wait 50-100 years to develop. What do our people want? Our people want good roads. Our people want to have industrial platforms where well-paid jobs are created. Our people want kindergartens and schools to be well-endowed. Now, from this money, we have the opportunity to make these investments and we will make them," Recean added.

The Growth Plan for Moldova was announced by President of the European Commission Ursula von der Leyen in October 2024. The document received political support on behalf of the European Parliament.

At a meeting on May 7, the government approved the Reform Agenda, which underlies the Growth Plan of Moldova and will provide access to financial support of 1.9 billion euros from the European Union. According to the Moldovan authorities, the reform agenda and investments will lead to a robust economy, higher wages and a higher quality of life.

Authorities estimate that the implementation of this plan will generate annual economic growth of at least 5 per cent. Also, the Economic Growth Plan will contribute to preparing Moldova for accession to the European Union and for assimilating pre-accession funds, which will be budgeted in the new European financial cycle 2028-2034.