The European Commission will provide €72.5 million in financial support to Moldova as part of its Macro-Financial Assistance operation, with Latvia granting another €50,000 from its ‘Emergency Funds’ budget. Moldova received a €50 million loan today and can expect a further €22.5 million in grants by the end of the month. The assistance will help cover additional funding needs in 2023, support macro-economic stability, and provide for further reforms.
The release of this support comes after the Commission found that Moldova has fulfilled policy commitments agreed with the EU.
Moldova has made progress in improving energy security, strengthening public sector governance, and improving the business climate. The Macro-Financial Assistance operation is worth up to €295 million, including €220 million in loans and €75 million in grants. By the end of October, Moldova will have received €172.5 million under this operation. Further payments will depend on progress with the agreed policy conditions.
With regards to Latvia’s donation, a government statement reads: “Russia’s full-scale attack on Ukraine and energy blackmail triggered a serious economic, energy and humanitarian crisis in Moldova, the consequences of which are still being felt by the country this year. With winter approaching, the resilience of the energy system is a particularly acute issue. It is essential for Latvia to support Moldova, which continues to fight the hybrid threat by Russia, concurrently with ambitious reforms and moving towards integration with the European Union. The aid granted to the energy sector of Moldova will contribute to the strengthening of Moldova’s resilience to external challenges.”
CENTRAL EASTERN EUROPE NEWS
European Commission and Latvia to Send Over €72.5m in Aide to Moldova
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