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Economy and Finance

Moldova

The European Commission conducts regular analysis on macroeconomic and financial developments in Moldova and holds regular discussions with national authorities about economic policies.

Macro-financial assistance

New MFA operation to Moldova

As part of the effort to help Moldova address its urgent financing needs stemming from the gas crisis that began in autumn last year, and was further exacerbated by the fallout from the Russian unjustified aggression against neighbouring Ukraine, in January 2022, the EU has made a proposal for a new Macro-financial Assistance operation for Moldova. On 6 April 2022, the European Parliament and Council adopted the new MFA for Moldova of EUR 150 million (EUR 120 million in medium-term loans on concessional terms and EUR 30 million in grants). The MFA entered into force on 18 July for two and a half years to be disbursed in three tranches of EUR 50 million each. Several policy conditions agreed between the EU and Moldova in the Memorandum of Understanding are attached to this operation, including in key priority areas, such as the rule of law and fight against corruption, public and financial sector governance, strengthening the business environment and energy sector reforms. Moldova also continues to satisfy the political pre-condition of democratic mechanisms, the rule of law and respect for human rights and presents a positive track record in implementing the standing IMF agreement.

Memorandum of Understanding between the European Union and Moldova
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MFA in the context of the COVID-19 pandemic

On 22 April 2020, the Commission adopted a proposal for a €3 billion MFA package to ten enlargement and neighbourhood partners to help them limit the economic fallout of the coronavirus pandemic. The decision was adopted by the European Parliament and the Council of the EU on 25 May 2020. As part of this package, the EU agreed on a MFA programme of EUR 100 million to Moldova. The first instalment of EUR 50 million was disbursed on 25 November 2020. The second and last instalment was disbursed on 8 October 2021, thereby successfully completing the programme.

Memorandum of Understanding between the European Union and Moldova
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(319.39 KB - PDF)
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MFA to Moldova (2017-2020)

Following a request by the Republic of Moldova, the European Commission adopted on 13 January 2017 a proposal for a Macro-Financial Assistance (MFA) programme of up to EUR 100 million, out of which up to EUR 40 million would be provided in grants and up to EUR 60 million in medium-term loans at favourable financing conditions. The new assistance is to be disbursed in three instalments and to complement the country’s IMF programme, approved on 7 November 2016.

The Decision providing macro-financial assistance to the Republic of Moldova was adopted by the European Parliament and the Council on 13 September 2017 and entered into force on 23 September.

All disbursements under the programme are tied to the political pre-conditions for MFA regarding the respect of democratic mechanisms, the rule of law and human rights, as well as to Moldova's track record under the IMF programme and the fulfilment of the specific policy conditions laid down in the Memorandum of Understanding. On 24 November 2017, the Commission, on behalf of the EU, and the Moldovan authorities signed the Memorandum of Understanding, which includes measures in areas such as public governance, financial sector governance, energy sector reforms and tackling corruption. The first instalment of EUR 30 million was released in October 2019. The second instalment of EUR 30 million was released in July 2020. The third and final instalment of the programme was cancelled, as the availability period of the programme ended in July 2020.

MFA 2010-2012

A previous MFA to the Republic of Moldova, amounting to EUR 90 million, all in grants, was successfully disbursed in three tranches in December 2010, September 2011 and April 2012.

 

    Related EU Policies and Activities

    The links below provide additional information on EU-Moldova relations: