The European Union will double its financial assistance to Moldova to face the economic impact of the war in neighboring Ukraine, the Council of the European Union announced on Tuesday.
The Council said in a statement that it has ‘decided to nearly double the amount of macro-financial assistance to Moldova’ to pound 295 million (approximately $317 million) to support the country’s ‘economic stabilization and structural reform agenda.’
In parallel with the International Monetary Fund’s program, the EU will allocate pound 75 million in the form of grants, while a further pound 220 will be given as a loan.
The bloc originally planned pound 150 million in support in 2022, but the EU reviewed the budget because of the ‘considerable negative effects of Russia’s war in Ukraine on the Moldovan economy.’
‘Given the current circumstances, it is appropriate that we double the funds which we make available to Moldova,’ said Swedish Finance Minister Elisabeth Svantesson, reassuring the country that it ‘can count on the EU.’
Moldova, a former Soviet state and now an EU candidate, has been strengthening its ties with the West in recent years.
It has faced security threats, an unprecedented influx of refugees, trade disruptions and economic slowdown since the war broke out last year in February.
Earlier this month, the EU launched a civilian mission in Moldova ‘to strengthen the resilience of the security sector in the areas of crisis management and countering hybrid threats.’
Source: Anadolu Agency