EUROPEAN COMMISSION APPROVES ALLOCATION OF FIRST TRANCHE OF MACRO-FINANCIAL ASSISTANCE TO MOLDOVA

The European Commission, on behalf of the EU, has today approved the disbursement of 30 million euros in Macro-Financial Assistance to the Republic of Moldova.

According to the EC press release, this is the first of three planned disbursements under the Macro-Financial Assistance (MFA) program to Moldova that was adopted in September 2017. The program, worth up to 100 million euros, is designed to assist Moldova in covering its external financing needs while implementing a wide-ranging and ambitious structural reform agenda.

Pierre Moscovici, European Commissioner for Economic and Financial Affairs, Taxation and Customs, said that this disbursement is an expression of support for the implementation of key reforms to improve democratic standards and protect the rule of law in Moldova.

"The European Commission stands ready to continue working closely with the Moldovan authorities to help deliver on a wide-ranging and ambitious set of economic and structural reforms necessary to secure jobs, growth and investment for the benefit of the people of Moldova", he said.

For disbursements under the MFA programs to take place, several conditions need to be met: political preconditions related to respect of democratic mechanisms, the rule of law and human rights need to be fulfilled, and specific policy measures need to have been successfully implemented. Disbursements are also conditional on good progress with the IMF program.

The European Commission also said that Moldova has fulfilled the conditions for getting the first tranche.

The disbursement of 30 million euros will be composed of 10 million euros in grants and 20 million euros in loans.