• Moldova Signs the Memorandum of Agreement for Financial Assistance with the European Union

    Moldova Signs the Memorandum of Agreement for Financial Assistance with the European Union
    10 September 2020 | 16:41

    On September 10, the Moldovan Parliament ratified the Memorandum of agreement between Moldova and the European Union on macro-financial assistance of up to €100 million.

    The financial assistance aims to alleviate Moldova’s budgetary needs and help address the current external and economic vulnerabilities.

    The Memorandum of Agreement provides a conditionalities list to be met for the disbursement of loan resources offered by the EU. Six conditionalities focus on the business environment, good governance, the fight against corruption, and public money management.

    Following the fulfillment of the Memorandum conditionalities, Moldova will receive financial resources in two tranches. The loan duration is a maximum of 12 months, to be distributed between 2020 and 2021.

    The first tranche is unconditional, while the second tranche will depend on the progress made in implementing the Memorandum provisions. The loan will be granted for a maximum of 15 years, and the interest rate will depend on the cost at which the European Commission will borrow on the international financial market.

    The Ministry of Finance and the National Bank of Moldova will present to the European Commission the progress made in implementing the Memorandum of Agreement provisions and the arrangements agreed between Moldova and the EU.

    Moldova and the European Union signed the Memorandum of Agreement on macro-financial assistance worth up to €100 million in Chișinău on July 21, 2020, and in Brussels on July 23, 2020.

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