Moldova, EU sign agreement to draw 1.9 bln euros for economic growth plan
CHISINAU. May 12 (Interfax) - Moldovan Prime Minister Dorin Recean and European Commissioner for Enlargement Marta Kos have signed an agreement on an economic growth plan, which envisages the European Union's allocating of 1.9 billion euros to Moldova before 2028, the Moldovan government's press service said
"We have signed a historic investment agreement [...], which demonstrates that we are in the middle of the process of [Moldova's] accession [to the European Union] and our European partners are confident of our success. Thanks to external solidarity and domestic unity, [...] we can prepare to become an EU member state in four years instead of ten or 20," the press service quoted Recean in a statement.
The approved growth plan envisages a reform program and investments, the statement said.
The plan allocates funds, including for reconstruction of municipal and regional roads, forests and irrigation systems along the Prut and Dniester rivers, it said.
Kos described the growth plan as a manifestation of confidence in Moldova and investment in the prospective EU member.
It was reported earlier that the Council of the EU gave a final approval to the establishment of the Reform and Growth Facility for Moldova totaling 1.9 billion euros on March 18.
The facility is the financial foundation of Moldova's growth plan presented in October 2024. The plan envisages support for Moldova in 2025-2027 through the provision of up to 385 million euros in grants and 1.5 billion euros in long-term low interest loans. Payments will depend on the reforms, which may boost Moldova's annual GDP growth to 5.3% by 2028.
In that connection, the Moldovan parliament amended the 2025 budget law in April to envisage an increase of the budget deficit by 28.9% to 5.1% of GDP.
The Moldovan government will disburse 400 million euros from the 1.9-billion-euro Reform and Growth Facility, established by the EU for Moldova, for infrastructure reforms and subsidized household electricity tariffs.
