The Council of the European Union today gave its final green light to setting up the Reform and Growth Facility for the Republic of Moldova, a new instrument to support EU-related reforms and economic growth in the country.
The envelope of €1.9 billion provided by the Facility is the largest EU financial support package since Moldova’s independence and comes on top of the EU’s other substantial support to the country, says a press release by the Council of the EU.
“Today we are helping Moldovans advance key socio-economic reforms, boost their economy and accelerate the country’s accession to the EU. The new instrument will also strengthen Moldova’s resilience by mitigating the impact of Russia’s unjust war of aggression against Ukraine,” said Adam Szłapka, Minister for European Affairs of Poland, representing the Polish Presidency at the Council of the EU.
This Facility is the financial pillar of the Moldova Growth Plan, presented by the Commission in October 2024. It will support the country during the period 2025-2027 and is expected to provide up to €385 million in grants and €1.5 billion in loans. These loans will be highly concessional, with a long repayment time and advantageous interest rates.
Payments will be subject to strict conditions in terms of the achievement of reforms set out in the agreed Reform Agenda.
The regulation on establishing the Reform and Growth Facility for Moldova will now be signed by the presidents of the Council and of the European Parliament, published in the EU Official Journal and enter into force on the following day.
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