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EU Approves Disbursement Of Nearly $34 Million In Moldova Aid

Paolo Gentiloni, the European commissioner for the economy
Paolo Gentiloni, the European commissioner for the economy

The European Commission has approved the disbursement of a further 30 million euros ($33.8 million) in macro-financial assistance to Moldova aimed at helping the country cover its external financing needs.

Paolo Gentiloni, the European commissioner for the economy, said in a statement on July 10 that the second instalment will “help Moldova cope with the economic shock caused by the coronavirus pandemic.”

Gentiloni also commended Moldova for “the reform efforts being pursued, for instance in improving the justice system and fighting corruption.”

It follows a first instalment of 30 million euros in October 2019. Each tranche is composed of 10 million euros ($11.3 million) in grants and 20 million euros ($22.6 million) in low-interest, long-term loans.

The commission's press release said the second installment was agreed after Moldova enacted “important measures in the fields of financial sector governance, public-sector governance, the fight against corruption, and money laundering, energy, and business climate and the implementation of the Deep and Comprehensive Free Trade Area (DCFTA).”

However, the commission canceled a third installment worth 40 million euro ($45 million) due to outstanding issues, including the lack of substantial progress in the recovery of more than $1 billion that disappeared from the country's biggest banks between 2012 and 2014, as well as failure to adopt a customs code in line with EU directives and to reform the Superior Council of Magistracy.

Separately, the European Commission noted that the EU is also making loans of 100 million euros ($113 million) available to Moldova to help it limit the economic fallout of the coronavirus epidemic as part of a 3 billion euro ($3.25 billion) macro-financial assistance program for 10 mainly Eastern European countries.

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