European Commission Unveiled Macro-Financial Aid’s Policy Conditions

The political conditions of the EU's 100 million Euro Macro-Financial Assistance (MFA) program for Moldova "are meant for strengthening public financial management, good governance and anti-corruption, and improving business environment." So informed on Tuesday, the European Commission's statement on 3 billion euros IFP package approval for ten expansion and neighborhood partners, Moldova included, meant at overcoming the coronavirus pandemic economic consequences, infotag.md reported. The Executive Vice President of the European Commission Valdis Dombrovskis noted that "during the crisis, the support provided to the EU's neighbors is of great importance for maintaining the entire region’s stability." “As part of the EU's global response to the coronavirus pandemic, we are working to help them mitigate the worst of the economic impact. These MFA Crisis Programs will be delivered on favorable terms based on signed Memoranda of Understanding, setting out specific reform commitments. This will help neighboring countries cover the needs for external financing in 2020-2021, taking into account the difficulties in overcoming the economic consequences of the pandemic, "he st ressed. MFA is part of the EU's enhanced engagement with Enlargement and Neighborhood Partner countries facing significant balance of payments problems. The aid demonstrates the EU's solidarity with these countries and its support for effective policies during unprecedented crisis. The assistance will be provided as a loan in two equal installments. The loan will be disbursed in a maximum of 12 months and has the maturity of 15 years with one single installment. The interest rate applied for each tranche will depend on the cost at which the European Commission is to borrow it from the international financial market.