MFA assistance is offered in the form of loans on very advantageous terms. The program says a concrete manifestation of the EU’s solidarity with its partners, offering them support to respond to the economic impact caused by the coronavirus pandemic.
Paolo Gentiloni, European Commissioner for the Economy, said: “I am glad that the European Union has disbursed an additional 50 million euros as financial support to the Republic of Moldova. This is concrete evidence of the EU’s commitment to helping Moldova cope with the economic and social impact of the COVID-19 pandemic. These means, which were allocated following the fulfillment of the agreed policy commitments, confirm the progress made by the Republic of Moldova in implementing the necessary measures to secure a more stable and prosperous future. ”
The disbursement of the first tranche of 50 million euros to Moldova under the MFA Program took place in November 2020. Moldova has made remarkable progress, managing to meet the conditions of the policies agreed with the European Union for the disbursement of the second and final tranche. of EUR 50 million under the current COVID-19 MFA Program. These conditions included important measures to improve the management of public finances in the health sector, the fight against corruption, measures to strengthen good governance and the rule of law, as well as measures to improve the business environment.
Moldova also continues to meet the preconditions for respect for human rights and the application of effective democratic mechanisms, including a multi-party parliamentary system and the rule of law.
With this disbursement, the European Union has successfully completed 5 of the 10 MFA programs included in the COVID-19 MFA package worth EUR 3 billion, disbursing the first installments to all its partners.
The Commission continues to work closely with other MFA partners to implement the agreed policy programs in a timely manner.
The MFA is part of the European Union’s broader engagement with its neighborhood and enlargement partners, and is designed as an exceptional tool for crisis response. The MFA is available to EU enlargement and neighborhood partners facing major balance of payments issues. It demonstrates the EU’s solidarity with its partners and support for promoting effective policies in a time of unprecedented crisis.
The decision to grant the MFA to the 10 neighborhood and enlargement partners in the context of the COVID-19 pandemic was proposed by the Commission on 22 April 2020 and was adopted by the European Parliament and the Council of Europe on 25 May 2020.
In addition to the MFA, the EU provides support to the Neighborhood Policy and Western Balkans partners through a number of instruments, including humanitarian aid, budget support, thematic programs, technical assistance, facilities and mixed guarantees provided by the European Development Fund. Sustainable in order to encourage investigations in the sectors most affected by the coronavirus pandemic.
EU-Republic of Moldova relations
The COVID-19 MFA program for Moldova is part of the EU’s extensive effort to mitigate the economic and social impact of the pandemic and accelerate the recovery process. This commitment is in line with the EU-Moldova Association Agreement, as well as with the general support of Team Europe, which is based on the joint efforts of EU Member States. At the same time, Moldova was among the first countries to benefit from the COVAX platform and the EU vaccine sharing mechanism, receiving over 1 million doses of vaccines that were distributed throughout the country.
Moreover, the disbursement under the MFA takes place shortly after a grant of 36.4 million euros for budget support under the EU Economic Recovery Plan for Moldova, amounting to up to 600 million euros for the next 3 years. In accordance with this Plan, as well as the Economic and Investment Plan for the Eastern Partnership, the European Union will continue to support the Republic of Moldova on the path to economic recovery and further implementation of reforms.
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