On 15 June 2017, EU ambassadors endorsed an agreement reached with the European Parliament on macro-financial assistance for the Republic of Moldova. Up to €100 million of assistance is to be directed at supporting the country’s economic stabilisation and structural reform agenda, helping to cover its external financing needs over the 2017-18 period, said the EU in a press release.
According to the EU, €60 million of the indicated amount will be provided to the country in loans and €40 million in the form of grants. This will supplement resources provided by the International Monetary Fund and other multilateral institutions.
Moldova’s economy was affected by political instability during the period between the elections in November 2014 and January 2016. The EU press release stated that the country has also been affected by a banking fraud scandal, weak economic activity and import bans imposed by Russia. Since early 2016, the authorities have adopted a number of reforms but need to undertake further efforts in implementing them, whilst those responsible for banking fraud need to be brought to justice, the EU statement added.