EU ministers approve 1.9B euro Reform and Growth Facility for Moldova
European Union EU affairs ministers approved on March 18 the setting up of the Reform and Growth Facility for the Republic of Moldova, a new instrument to support EU-related reforms and economic growth in the country, a statement by the Council of the EU said.
The envelope of 1.9 billion euro provided by the Facility is the largest EU financial support package since Moldova’s independence and comes on top of the EU’s other substantial support to the country, the statement said.
“It will boost Moldova’s economy and bring the country closer to EU membership by accelerating reforms,” the Council of the EU said.
“It will also help Moldova face the challenges stemming from Russia’s war of aggression against Ukraine and continuous Russia’s attempts to destabilise the country.”
The facility is the financial pillar of the Moldova Growth Plan, presented by the European Commission in October 2024.
It will support Moldova during the period from 2025 to 2027 and is expected to provide up to 385 million euro in grants and 1.5 billion euro in loans. These loans will be highly concessional, with long repayment time and advantageous interest rates.
Payments will be subject to strict conditions in terms of the achievement of reforms set out in the agreed Reform Agenda, the statement said.
Adam Szłapka, Minister for European Affairs of Poland – whose country holds the rotating presidency of the Council of the EU – said: “Today we are helping Moldovans advance key socio-economic reforms, boost their economy and accelerate the country’s accession to the EU.
“The new instrument will also strengthen Moldova’s resilience by mitigating the impact of Russia’s unjust war of aggression against Ukraine,” Szłapka said.
(Photo: EC Audiovisual Service)
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