Moldova receives 270 mln euro EC growth facility tranche

CHISINAU. July 8 (Interfax) -Moldova has received a first 270 million euro tranche of the European Commission's approved Reform and Growth Facility for the country, worth a total of 1.9 billion rubles.

The National Bank of Moldova credited the tranche to the international reserves in June.

"The growth in official reserve assets in the [June] reporting period was facilitated by receipts by the Finance Ministry: 336.25 million euros, including budget support in the form of a loan provided by the European Commission to the government, the first 270 million euro tranche of the Reform and Growth Facility, the NBM said in a statement.

As a result, the international reserves grew by 221.49 million euros, or 4.6% in June, taking factors like exchange rates, domestic currency market interventions and external public debt servicing into account.

The European Parliament approved the Reform and Growth Facility for Moldova on March 11.

President of the European Commission Ursula von der Leyen said on July 4 that the 270 million euro tranche was ready to be disbursed. "I can confirm that we release the first 270 million euros. It means a new Balti regional hospital, restored district heating in Chisinau, and lower electricity and gas bills," she said.

Von der Leyen said in Chisinau in the run up to the presidential election in Moldova in October 2024 that the EU would provide funding for a Reform and Growth Facility for Moldova. The EU later approved the plan, under which 1.9 billion euros is to be disbursed in 2025-2027 as grant of 400 million euros 40-year loan of 1.5 billion euros with interest rates ranging from 0.1% to 3.37% and a 10-year grace period.