5 Aug 2020 12:00

Moldova receives 10-mln-euro grant from EU

CHISINAU. Aug 5 (Interfax) - The Moldovan Finance Ministry has reported the receipt of a 10-million-euro grant from the European Union as part of the second tranche (30 million euros) of the EU Macro-Financial Assistance (MFA) program for Moldova, a representative of the ministry told Interfax on Wednesday.

The second tranche was transferred after Moldova met the terms of the MFA Memorandum of Understanding, the representative said.

"These include measures in the field of governance of financial and public sectors, suppression of corruption and money laundering, activity of the energy sector, business climate, and implementation of the EU-Moldova Agreement on the Deep and Comprehensive Free Trade Area," the representative said.

The 20-million-euro loan from the second tranche of the MFA program was credited to the ministry's account on July 16.

The European Commission approved macro-financial assistance to Moldova back in 2017. It was planned to allot 100 million euros for covering Moldova's external financing needs. However, the tranche was delayed until 2018 after the Moldovan authorities reformed the electoral system despite recommendations from the Venice Commission, the European Union, and the OSCE.

The assistance was delayed again after the Moldovan authorities cancelled results of the Chisinau mayoral election won by an opposition member.

The first tranche was received only in September 2019 after tycoon Vlad Plahotniuc was removed from office. After the government reshuffle in November 2019, the second tranche was delayed and new terms were set. The Moldovan government met those terms, but Moldova would not receive the third tranche of 40 million euros considering that the three-year period of the MFA program expires in August.