EU gives extra €40 million loan to Moldova

EU gives extra €40 million loan to Moldova

The European Union has given €40 million to Moldova as a loan, part of its ongoing assistance to countries directly and heavily impacted by the Russian invasion of Ukraine.

It brings the total amount of additional support the EU has given to Moldova up to €150 million.

The war has significantly affected Moldova, adding to its pre-existing economic challenges.

The EU says the total financial package of €150 million, will "help Moldova address its urgent financing needs and support overall macroeconomic stability."

The payment was released after the European Commission concluded that Moldova "broadly fulfilled the policy conditions agreed." Strengthening the rule of law, as well as the public and financial sector governance were the conditional clauses.

The sum will help the country advance on its "European path," encouraging ambitious reforms, the statement added.

Moldova and Ukraine were granted EU candidate status in June 2022. The 27-nation bloc has continued to increase its support to both nations ever since.

German Chancellor Olaf Scholz travelled to Romania’s capital in April, where Moldova's integration into the EU was one of the discussion points.

In January, the Commission proposed giving up to €145 million more in financial assistance to Moldova. That proposal is currently under consideration by the European Parliament and Council.