Decision (EU) 2022/563 providing macro-financial assistance to the Republic of Moldova

Summary:

Decision (EU) 2022/563 - formally signed off by the co-legislators on 6 April 2022 - establishing a new emergency Macro-Financial Assistance (MFA) programme for Moldova of up to €150 million.

Further information:

Macro-Financial Assistance (MFA) operations are part of the European Union's wider engagement with neighbouring countries and are intended as an exceptional EU crisis response instrument. They are available to EU neighbourhood countries experiencing severe balance-of-payments problems.

Moldova has faced a number of economic and political challenges over the years. The economic downturn caused by the COVID-19 (coronavirus) pandemic and a drought was exacerbated by a political crisis that followed the presidential elections in November 2020 and which were only resolved by the parliamentary elections in July 2021. More recently, the energy crisis added to the challenges facing the country. Stakeholders across the political spectrum nonetheless sought to stay aligned in supporting an ambitious reform agenda.

Against this backdrop, the European Commission decided to submit a proposal on 4 January 2022 for a new MFA programme of €150 million to the benefit of Moldova, of which €120 million would be in the form of loans and €30 million in the form of grants. This programme was designed following a request from Moldovan authorities, and as a complement to another programme approved by the International Monetary Fund (IMF) in December 2021.

The proposed Decision was endorsed by the plenary of the European Parliament on 24 March and by the Council of the European Union on 4 April. The Act was formally signed by the co-legislators on 6 April 2022 and published in the Official Journal on 8 April 2022. The MFA entered into force on 18 July 2022 for two and half years.

The first tranche of this MFA operation for Moldova was disbursed on 1 August 2022.

• Primary Source

Commentary and Analysis

EPRS: At a Glance, March 2022: Macro-financial assistance to Moldova https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2022)729323

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Official

EUR-LEX: COM(2022)4: Proposal for a Decision on providing macro-financial assistance to the Republic of Moldova https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2022:4:FIN

EUR-LEX: SWD(2022)1: Staff Working Document accompanying the Proposal - Ex-Ante Evaluation Statement https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2022:1:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on Macro-financial assistance to Moldova (2021/0438(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2021/0438(COD)

European Commission: International Economic Relations: Neighbourhood Countries: Moldova https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-coordination/international-economic-relations/enlargement-and-neighbouring-countries/neighbouring-countries-eu/neighbourhood-countries/moldova_en

European Commission: Press Release, 04/01/2022: EU-Moldova: Commission proposes €150 million in Macro-Financial Assistance https://ec.europa.eu/commission/presscorner/detail/en/IP_21_7101

European Parliament: Press Release, 24/03/2022: Parliament approves €150 million in assistance to Moldova https://www.europarl.europa.eu/news/en/press-room/20220321IPR25920/

Council of the European Union: Press Release, 04/04/2022: Council adopts €150 million assistance to the Republic of Moldova https://www.consilium.europa.eu/en/press/press-releases/2022/04/04/council-adopts-150-million-assistance-to-the-republic-of-moldova/

European Commission: Press Release, 01/08/2022: EU disburses €50 million of Macro-Financial Assistance to the Republic of Moldova https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4744

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