Decision 2023/1165 - Amendment of Decision (EU) 2022/563 as regards the amount of macro-financial assistance to Moldova - Main contents

EN

Official Journal of the European Union

L 155/1

On 6 April 2022, the European Parliament and Council adopted Decision (EU) 2022/563 (2) providing the Union’s macro-financial assistance to the Republic of Moldova (Moldova) for an amount of EUR 150 000 000, in medium term-loans and in grants. The Memorandum of Understanding (MOU) setting out the Union’s macro-financial assistance entered into force on 18 July 2022 and that assistance will be available for a period of two and a half years. On 1 August 2022, following the successful fulfilment by Moldova of all policy actions agreed with the Union in the MOU, the first instalment of EUR 50 000 000 was disbursed.

Decision (EU) 2022/563 providing the Union’s macro-financial assistance was adopted in parallel with the International Monetary Fund (IMF) programme for Moldova of 20 December 2021 under the Extended Credit Facility/Extended Fund Facility arrangement for the amount of USD 564 000 000. On 11 May 2022, as a result of the growing financing needs stemming largely from the effects of the war in Ukraine on the Moldovan economy, the IMF adopted a decision to increase the arrangement by USD 267 000 000. On 9 January 2023, the IMF announced that Moldova had successfully undergone the second programme review, and provided for the immediate disbursement of a further USD 27 000 000 to Moldova under the arrangement.

The Union’s indicative allocation for Moldova under the European Neighbourhood Instrument was EUR 518 150 000 for the 2014-2020 period, including budgetary support and technical assistance. The single support frameworks for the 2014-2017 and 2017-2020 periods identified the priority sector for cooperation with Moldova funded by the European Neighbourhood Instrument for the previous budgetary period. The priorities for the 2021-2027 period are set out in the new multiannual indicative programme, which has been prepared in close consultation with all relevant stakeholders.

Given that there is still a significant residual external financing gap in Moldova’s balance of payments for 2023, over and above the resources provided by the IMF and other multilateral institutions, it is necessary to increase the Union’s macro-financial assistance provided to Moldova in accordance with Decision (EU) 2022/563. That increase is, under the current exceptional circumstances, considered to be an appropriate response to Moldova’s request for support to its economic stabilisation, in conjunction with the IMF programme. The Union’s macro-financial assistance would support the economic stabilisation and the structural reform agenda of Moldova, supplementing resources made available under the IMF’s financial arrangement.

The determination of the amount of the Union’s increased macro-financial assistance is based on an updated quantitative assessment of Moldova’s residual external financing needs, and takes into account its capacity to finance itself with its own resources, in particular the international reserves at its disposal. The determination of the amount of the assistance also takes into account expected financial contributions from multilateral donors, including the IMF and the World Bank, and the need to ensure fair...