Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on providing macro-financial assistance to the Republic of Moldova
Date: 2022-01-04
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: Community loan, EU aid, European neighbourhood policy, Moldova, coronavirus disease, economic policy, economic stabilisation, epidemic, financial aid, macroeconomics

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   EUROPEAN COMMISSION  Brussels, 4.1.2022  COM(2022) 4 final 2021/0438 (COD)  Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on providing macro-financial assistance to the Republic of Moldova {SWD(2022) 1 final}  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

In  recent  years,  the  Republic  of  Moldova  has  faced  many  difficulties  including  on  the 
economic and political  front. In 2020, the COVID-19 pandemic, as well as a drought in the 
summer, had a sizeable negative effect on growth, with GDP contracting by 7%, the strongest 
recession  since  the  global  financial  crisis.  The  economic  downturn  was  exacerbated  by  a 
protracted  political  crisis  that  followed  the  presidential  elections  in  November  2020,  finally 
resolved  by  the  parliamentary  elections  in  July  2021.  Since  August,  when  the  new,  reform-
oriented government took office, all political forces in Moldova (including the President, the 
Government and the Parliament) are aligned, supporting a common ambitious reform agenda, 
with  the  focus  on  key  policy  areas  such  as  the  justice  sector  reforms,  good  governance  and 
fight against corruption.  

However,  notwithstanding  the  renewed  political  momentum  and  strong  commitment  to 
implementing  reforms,  Moldova  continues 
including 
governance,  corruption,  limited  administrative  capacity,  and  a  recent  energy  crisis,  which 
further  weakened  Moldova’s  economic  stability  and  put  the  country  through  a  challenging 
negotiation process with Gazprom (a new gas supply agreement was signed on 29 October). 

to  face  significant  challenges, 

In  this  context  and  given  Moldova’s  continued  sizeable  financing  needs,  with  the  external 
financing gap estimated at 1.2% of GDP in 2022, the Moldovan government requested a new 
MFA from the EU on 19 November 2021, following an IMF staff level agreement (announced 
on 21 October 2021) on a three-year Extended Credit Facility/Extended Fund Facility of USD 
564 million.  

Against  the  backdrop  of  renewed  political  stability  and  after  an  in-depth  assessment  of  the 
political and economic situation in Moldova, the Commission is submitting to the European 
Parliament  and  the  Council  a  proposal  to  provide  a  new  MFA  of  EUR  150  million  to  the 
benefit of the Republic of Moldova, of which EUR 120 million would be in the form of loans 
and EUR 30 million in the form of grants.  

The proposed MFA would help Moldova cover part of its residual external financing needs, 
which are estimated at USD 480 million, in the context of the new IMF programme over the 
period of 2021-2025.  

The  disbursement  would  take  place  in  three  tranches,  with  the  release  of  each  tranche, 
including the first  one, strictly linked to  good progress  with  the implementation  of both  the 
IMF  programme  and  a  number  of  additional  policy  measures  to  be  agreed  between  the 
Commission and the authorities and listed in a Memorandum of Understanding (MoU). The 
MoU is likely to focus on policy reforms addressing asset recovery linked to the 2014 bank 
fraud, continued Public Finance Management (PFM)  reforms, the justice sector reform , the 
energy  sector  as  well  as  the  business  environment  in  general.  The  implementation  of  the 
proposed  operation  is  expected  to  go  hand-in-hand  with  the  support  under  budgetary 
operations  financed  by  the  Neighbourhood,  Development  and  International  Cooperation 
Instrument (NDICI).  

As  further  elaborated  in  the  Commission  Staff  Working  Document  accompanying  this 
proposal,  the  Commission  considers,  based  also  on  the  assessment  of  the  political  situation 
made by the European External Action Service, that the political and economic pre-conditions 
for the proposed MFA operation are satisfied. 

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• 

General context  

Despite a notable recovery  following the severe  2020 recession, Moldova’s macroeconomic 
outlook  remains  vulnerable.  This  is  partly  due  to  the  on-going  difficult  pandemic  situation 
(with the number of COVID-19 cases rising and a relatively low vaccination rate below 30% 
by early December 2021), as well as the recent gas crisis that put Moldova under additional 
financial  strains.  This  is  on  top  of  significant  structural  weaknesses,  notably  limited 
administrative  capacity,  further  need  to  improve  governance  as  well  as  the  ongoing  fight 
against corruption. 

Following  a  steep  decline  in  2020,  caused  by  the  pandemic,  the  economy  marked  a 
considerable recovery in the first half of 2021 with GDP up by 11.5%, however, much of it 
due to  the low base.  Growth is  projected  to  slow down in  the second half of the  year,  with 
higher  inflation  and  weakened  household  consumption.  Against  this  backdrop,  the  IMF  and 
World Bank assume an overall recovery of about 7% for this year as a  whole, and a decline 
next year to 4.5% GDP.  

After  significant  disinflation  last  year,  inflation  as  measured  by  the  Consumer  Price  Index 
(CPI)  picked up strongly in  2021, up to  8.8% in  October, significantly  exceeding the target 
rate  set  by  the  National  Bank  of  Moldova  (NBM)  at  5%  +/-  1.5  pps.  Most  of  it  can  be 
accounted for by the rise in food prices as well as higher energy tariffs. In response to the high 
inflationary pressure, the central bank raised its policy rate several times this year, standing at 
5.5%  in  October.  The  NBM  projects  a  double-digit  inflation  in  the  first  half  of  2022,  up  to 
15%,  some  of  which  is  assumed  to  be  of  transitory  nature,  but  may  also  lead  to  further 
monetary tightening.  

On the back of the improved growth perspective and higher tax revenues, in September, the 
government amended the State Budget Law, projecting a lower than initially assumed deficit, 
at 5.1% of GDP compared to 6.7% of GDP at the start of 2021. However, given the ongoing 
energy  crisis  and  with  the  authorities  planning  to  introduce  new  compensation  measures  to 
protect  the  most  vulnerable  consumers,  Moldova’s  fiscal  position  is  forecast  to  deteriorate 
next year. According to the State Budget 2022, presented to the Parliament on 25 November, 
the  budget  deficit  will  increase  to  6%  of  GDP  next  year,  high  compared  to  Moldova’s 
historical averages, hovering below 2% of GDP in 2015-2019.  Expenditures are projected to 
rise by 7.6 billion lei, compared to a rise in revenues by 4.2 billion lei, supported by higher 
VAT collection.  

Given  increased  spending  and  notwithstanding  additional  assistance  from  its  international 
partners  to  mitigate  the  effects  of  the  energy  price  increase,  Moldova’s  public  debt  is 
projected  to  widen  rather  considerably,  exceeding  40%  of  GDP  in  the  medium  term, 
compared to some 28% of GDP in 2019, before the pandemic-induced recession and the gas 
crisis.   

The current account deficit, after having narrowed in 2020 to 6.6% of GDP, widened in  the 
first  half  of  2021  to  14%  of  GDP  year-on-year,  putting  renewed  pressure  on  Moldova’s 
balance of payments. According to IMF forecasts, the current account deficit will reach USD 
1.5 billion by the end of this year (some 11% of GDP), an almost two-fold increase compared 
last year. Much of this can be accounted for by the significant rise of both imports and exports 
in 2021. Between January-September exports were up by 21.1% compared to the same period 
in 2020, but were outpaced by a 31.7% growth of imports.  

Moldova’s  foreign  exchange  reserves  proved  stable  throughout  the  pandemic  in  2020,  and 
increased in 2021, remaining high relative to historical standards, at USD 4 billion as of end-
September.  This  translates  into  a  coverage  of  8  months  of  imports,  and  largely  reflects  the 

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allocation of the Special Drawing Rights (SDR) by the IMF in August of USD 236 million, 
which was part of the Fund’s global response to the COVID-19 crisis.  

• 

Consistency with existing policy provisions in the policy area 

Decision No 701/2020/EU on providing previous macro-financial assistance to the Republic 
of Moldova (as part of the MFA package to the enlargement and neighbourhood countries in 
the  context  of  the  COVI-19  pandemic)  in  the  amount  of  EUR  100  million  in  loans  was 
adopted  by  the  European  Parliament  and  the  Council  on  25  May  2020.  The  assistance  was 
fully disbursed during 2020-2021. 

• 

Consistency with other Union policies 

The  EU  and  the  Republic  of  Moldova  have  developed  a  close  political  and  economic 
relationship over the years, leading to conclusion of the Association Agreement (including the 
DCFTA), which was signed on 27 June 2014 and entered fully into force on 1 July 2016, and 
an  Association  Agenda  sets  out  the  list  of  priorities  for  joint  work.  The  last  Association 
Agenda for 2017-2019 has been extended over the period of one  year (due to the pandemic 
last year), whilst a new document is under preparation, covering the 2021-2027 period.  

Moldova's  economic  ties  with  the  EU  are  also  well  developed.  The  EU  continues  to  be 
Moldova’s largest trading partner, accounting for 52% of its total trade in 2020 (approx. 67% 
of  total  exports  and  45%  of  Moldova’s  total  imports),  followed  by  Russia  (9%)  and  China 
(8%). 

Countries  that  are  covered  by  the  European  Neighbourhood  Policy  are  eligible  for  MFA  (if 
fulfilling different conditions). The EU MFA would complement the grants mobilised under 
the NDICI and other EU programmes and, in particular, the conditionalities envisaged under 
the budget  support packages being implemented by the EU.  By supporting the adoption, by 
the  Moldovan  authorities,  of  an  appropriate  framework  for  macroeconomic  policy  and 
structural  reforms,  the  EU’s  MFA  would  enhance  the  added  value  and  effectiveness  of  the 
EU’s overall financial interventions, including through other financial instruments. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis for this proposal is Article 212 TFEU.  

• 

Subsidiarity (for non-exclusive competence)  

is  respected  as 

The  subsidiarity  principle 
the  objectives  of  restoring  short-term 
macroeconomic stability in  the Republic of Moldova cannot  be sufficiently achieved by the 
Member States alone  and can be better achieved by the European  Union. The main reasons 
are  the  budgetary  constraints  faced  at  the  national  level  and  the  need  for  strong  donor 
coordination in order to maximise the scale and effectivenes of the assistance.  

• 

Proportionality 

The  proposal  complies  with  the  proportionality  principle:  it  confines  itself  to  the  minimum 
required in order to achieve the objectives of short-term macroeconomic stability and does not 
go beyond what is necessary for that purpose.  

As  identified  by  the  Commission  based  on  the  estimates  of  the  IMF  in  the  context  of  the 
Extended  Fund  Facility,  the  amount  of  the  proposed  new  MFA  corresponds  to  36%  of  the 
estimated  residual  financing  gap  for  the  period  2021-2025.  This  is  consistent  with  standard 
practices  on  burden-sharing  for  MFA  operations  (for  a  country  with  an  Association 

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Agreement, the upper limit would be 60% according to the ECOFIN Council conclusions of 8 
October 2002), taking into account the assistance pledged to Moldova by other bilateral and 
multilateral donors.   

• 

Choice of the instrument 

Project  finance  or  technical  assistance  would  not  be  suitable  or  sufficient  to  address  the 
macroeconomic  objectives.  The  key  value  added  of  the  MFA  in  comparison  to  other  EU 
instruments would be to alleviate the external financial constraints and to help create a stable 
macroeconomic  framework,  including  by  promoting  a  sustainable  balance  of  payments  and 
budgetary situation, and an appropriate framework for structural reforms. By helping to put in 
place  an  appropriate  overall  policy  framework,  MFA  can  increase  the  effectiveness  of  the 
actions financed in Moldova under other, more narrowly-focused EU financial instruments.  

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

MFA is provided as an integral part of the international support for the economic stabilisation 
of  the  Republic  of  Moldova.  In  the  preparation  of  this  proposal  for  MFA,  the  Commission 
services have consulted with the IMF and the World Bank, which have already put in place 
sizeable financing programmes and are preparing new ones.  The Commission  consulted the 
Alternate Economic and Financial Committee on 25 November 2021, where an endorsement 
for the draft proposal was provided. The Commission has also been in regular contact with the 
Moldovan authorities. 

• 

Collection and use of expertise 

In  line  with  the  requirements  of  the  Financial  Regulation,  in  the  context  of  the  COVID-19 
MFA package, the Commission services have carried out  an Operational Assessment  of the 
financial  and  administrative  circuits  of  Moldova  in  order  to  ascertain  that  the  procedures  in 
place  for  the  management  of  programme  assistance,  including  MFA,  provide  adequate 
guarantees.  The  final  report  of  the  Operational  Assessment,  prepared  by  a  consultancy 
company,  was  received  in  June  2020.  The  report  notes  clear  progress  in  PFM  systems  and 
other financial circuits since 2015 when the last exercise was undertaken and concludes that 
the  status  of  Moldova’s  financial  circuits  and  procedures  is  deemed  favourable  for  a 
subsequent MFA operation. Developments in this area will continue to be closely monitored 
also through the regular progress reports on PFM reforms produced by the EU Delegation in 
Chisinau.  

• 

Impact assessment 

The  EUs  macro-financial  assistance  is  an  exceptional  emergency  instrument  aimed  at 
addressing  severere  balance-of-payment  difficulties  in  third  countries.  Therefore,  this  MFA 
proposal is exempted from the requirement to carry out an Impact Assessment in accordance 
with  the  Commission's  Better  Regulation  Guidelines  (SWD(2015)  111  final)  as  there  is  a 
political imperative to move ahead quickly in a situation requiring a rapid response.  

More  generally,  the  Commission's  MFA  proposals  build  on  lessons  learned  from  ex-post 
evaluations carried out on past operations in the EU's neighbourhood. The new MFA, and the 
economic  adjustment  and  reform  programme  attached  to  it,  will  help  alleviate  Moldova's 
short-term financing needs while supporting policy measures aimed at strengthening medium-
term  balance  of  payments  and  fiscal  sustainability  and  raising  sustainable  growth,  thus 
complementing  the  programme  to  be  adopted  by  the  IMF  Executive  Board.  These  policy 

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conditions should address some of the fundamental weaknesses shown over the years by the 
Moldovan economy and economic governance system. Possible areas of conditionality could, 
in  principle,  include  reforms  to  strengthen  governance  in  the  financial  sector,  PFM,  energy 
sector reforms, and accompanying measures to strengthen the social safety net, improving the 
investment climate and supporting the implementation of the DCFTA agreement. 

• 

Fundamental rights 

Countries  that  are  covered  by  the  ENP  are  eligible  for  MFA.  A  pre-condition  for  granting 
MFA is that the eligible country respects effective democratic mechanisms, including a multi-
party parliamentary system and the rule of law, and guarantees respect for human rights.  

The renewed reform-commitment and strong political will by the new Moldovan authorities, 
following the elections in July, in the key reform areas including justice sector reforms, good 
governance,  the  rule  of  law  and  fight  against  corruption  is  a  clear  positive  sign.  The 
authorities are committed to conduct these reforms in a transparent manner and in line with 
EU standards. To that end, the political pre-condition for an MFA programme is considered to 
be satisfied. 

4. 

BUDGETARY IMPLICATIONS 

The  proposed  EUR  150  million  MFA  operation  for  Moldova  is  foreseen  to  be  disbursed  in 
three equal tranches to be released between 2022 and 2024. The financial programming over 
the 2022-2024 period allows for a grant component of EUR 30 million to be financed from 
the available budget on budget line 14 20 03 01 “Macro-financial assistance (MFA) - grants''. 
For the loan component of EUR 120 million, the required provisioning at a rate of 9% of the 
External Action Guarantee will be programmed under the Neighbourhood, Development and 
International  Cooperation  Instrument  (NDICI),  for  a  total  amount  of  EUR  10,8  million 
(budget line 14 02 01 70 “NDICI – Provisioning of the Common Provisioning Fund”).  

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The European Union shall make the MFA available to  Moldova for  a total amount of EUR 
150 million, provided in the form of medium- to long-term loans as well as including a grant 
component,  which  will  contribute  to  cover  Moldova’s  residual  financing  needs  in  2022-24. 
The  assistance  is  planned  to  be  disbursed  in  three  instalments,  disbursed  evenly  throughout 
the  MFA’s  duration,  provided  that  the  policy  measures  attached  to  each  tranche  have  been 
fully implemented in a timely manner.  

The assistance will be managed by the Commission. Specific provisions on the prevention of 
fraud and other irregularities, consistent with the Financial Regulation, are applicable.  

The  Commission  and  the  Moldovan  authorities  would  agree  on  a  Memorandum  of 
Understanding setting out the structural reform measures associated with the proposed MFA 
operation, including aspects of timing and sequencing. Moreover, as is normally the case with 
MFA,  the  disbursements  would  inter  alia  be  conditional  on  satisfactory  reviews  under  the 
IMF programme, as well as progress on the implementation of the EU Moldova Association 
Agreement  and  the  DCFTA.  The  Commission  will  work  closely  with  the  authorities  to 
monitor progress on the policy actions and the pre-conditions, as specified above.  

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2021/0438 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on providing macro-financial assistance to the Republic of Moldova 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 212 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

to  develop  within 

Relations  between  the  European  Union  ('the  Union')  and  the  Republic  of  Moldova 
('Moldova')  continue 
the  European 
Neighbourhood  Policy  and  the  Eastern  Partnership.  Moldova  joined  the  Union's 
Eastern  Partnership  in  2009,  which  was  followed  by  the  negotiation  of  an  EU-
Moldova  Association  Agreement.  This  agreement,  which  includes  the  gradual 
introduction of a Deep and Comprehensive Free Trade Area (DCFTA), was signed in 
June 2014 and entered into force on 1 July 2016. 

framework  of 

the 

(2)  Moldova’s economy has been affected significantly by the 2020 recession caused by 
the  COVID-19  pandemic,  the  protracted  political  stalemate  in  the  country  after  the 
Presidential  elections  in  November  2020,  as  well  as  the  recent  energy  crisis.  The 
situation  contributed  to  Moldova’s  sizable  financing  gap,  deteriorating  external 
position, and growing fiscal needs.   

(3) 

Following the election in July 2021, the new Moldovan government has demonstrated 
a strong commitment  to  further  reforms, with  an  ambitious  programme  “Moldova in 
good times 2021-2025”, focusing on key policy areas including, among others, justice 
sector reforms, fight against corruption, good governance and the rule of law. 

(4)  With  the  renewed  reform-commitment  and  strong  political  will,  the  authorities  have 
significantly accelerated on reform implementation, which has also allowed Moldova 
to successfully complete the COVID-19 MFA operation1, as all reform actions agreed 
with  the  Union  in  the  Memorandum  of  Understanding  had  been  fulfilled,  with  the 
exception on one action – on asset recovery – for which a waiver was granted. To that 
end,  the  Commission  consulted  the  Member-States  Committee,  and  received  no 
objections.  

(5) 

1 

After  the  adoption  of  a  new  IMF  programme,  negotiated  in  2020,  had  stalled,  the 
International Monetary Fund (‘IMF’) has re-engaged with Moldova after the July 2021 
elections and reached staff-level agreement (21 October 2021) on an Extended Credit 

Decision (EU) 2020/701 of the European Parliament and of the Council of 25 May 2020 on providing 
macro‐financial assistance to enlargement and neighbourhood partners in the context of the COVID‐19 
pandemic, OJ L 165, 27.5.2020, p. 31–37 

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Facility/Extended Fund Facility programme of USD 564 million. The new programme 
was  adopted  by  IMF  Executive  Board  decision  [on  20  December  2021].  The 
programme  aims  to  sustain  the  economic  recovery  and  launch  an  ambitious 
governance  and  institutional  reforms  agenda,  to  strengthen  transparency  and 
accountability,  improve  public  policy  predictability,  strengthen  financial  institutions 
and foster deregulation.  

In  view  of  a  worsening  economic  situation  and  outlook,  Moldova  requested  a 
complementary macro-financial assistance from the Union in November 2021.  

The  Union's  indicative  allocation  for  Moldova  under  the  European  Neighbourhood 
Instrument  is  EUR  518,15  million  for  the  2014-2020  period,  including  budgetary 
support and technical assistance. The Single Support Frameworks for 2014-2017 and 
2017-2020 identified the priority sector for cooperation with  Moldova funded by the 
European Neighbourhood Instrument for the previous budgetary period. The priorities 
for  2021-2027  will  be  set  out  in  the  new  Multiannual  Indicative  Programme,  which 
has been prepared in close consultation with all relevant stakeholders.  

Given  that  Moldova  is  a  country  covered  by  the  European  Neighbourhood  Policy,  it 
should  be  considered  to  be  eligible  to  receive  macro-financial  assistance  from  the 
Union.  

The Union’s macro-financial assistance should be an exceptional financial instrument 
of untied and undesignated balance-of-payments support, which aims at addressing the 
beneficiary’s 
the 
implementation  of  a  policy  programme  containing  strong  immediate  adjustment  and 
structural  reform  measures  designed  to  improve  the  balance-of-payments  position  in 
the short term. 

immediate  external  financing  needs  and  should  underpin 

(6) 

(7) 

(8) 

(9) 

(10)  Given  that  there  is  still  a  significant  residual  external  financing  gap  in  Moldova's 
balance  of  payments  over  and  above  the  resources  provided  by  the  IMF  and  other 
multilateral  institutions,  the  Union  macro-financial  assistance  to  be  provided  to 
Moldova  is,  under  the  current  exceptional  circumstances,  considered  to  be  an 
appropriate response to Moldova's request for support to the economic stabilisation, in 
conjunction with the IMF programme. The Union's macro-financial assistance would 
support  the  economic  stabilisation  and  the  structural  reform  agenda  of  Moldova, 
supplementing resources made available under the IMF's financial arrangement. 

(11)  The  Union's  macro-financial  assistance  should  aim  to  support  the  restoration  of  a 
sustainable external financing situation for Moldova thereby supporting its economic 
and social development. 

(12)  The  Union’s  macro-financial  assistance  is  expected  to  go  hand-in-hand  with  the 
implementation  of  disbursements  of  budget  support  operations  under 
the 
Neighbourhood,  Development  and  International  Cooperation  Instrument  established 
by Regulation (EU) 2021/947 of the European Parliament and of the Council2. 

(13)  The determination of the amount of the Union's macro-financial assistance is based on 
a  complete  quantitative  assessment  of  Moldova's  residual  external  financing  needs, 
and takes into account its capacity to finance itself with its own resources, in particular 
the  international  reserves  at  its  disposal.  The  Union's  macro-financial  assistance 

2 

Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing 
the  Neighbourhood,  Development  and  International  Cooperation  Instrument  –  Global  Europe, 
amending  and  repealing  Decision  No  466/2014/EU  and  repealing  Regulation  (EU)  2017/1601  and 
Council Regulation (EC, Euratom) No 480/2009 (OJ  L 209, 14.6.2021, p. 1) 

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should complement the programmes and resources provided by the IMF and the World 
Bank.  The  determination  of  the  amount  of  the  assistance  also  takes  into  account 
expected  financial  contributions  from  multilateral  donors  and  the  need  to  ensure  fair 
burden  sharing  between  the  Union  and  other  donors,  as  well  as  the  pre-existing 
deployment  of  the  Union's  other  external  financing  instruments  in  Moldova  and  the 
added value of the overall Union involvement.   

(14)  Taking into consideration  Moldova's residual external financing needs, the level of its 
economic  development,  as  measured  by  per  capita  income  and  poverty  ratios,  its 
capacity to finance itself with its own resources, in particular the international reserves 
at its disposal, and the assessment of its ability to repay drawing on debt sustainability 
analysis, a part of the assistance should be provided in the form of grants. 

(15)  The Commission should ensure that the Union's macro-financial assistance is  legally 
and substantially in line with the key principles, objectives and measures taken within 
the different areas of external action and other relevant Union policies. 

(16)  The  Union's  macro-financial  assistance  should  support  the  Union's  external  policy 
towards Moldova. The Commission  and the European External Action Service should 
work closely together throughout the macro-financial assistance operation in order to 
coordinate, and to ensure the consistency of, Union external policy. 

(17)  The  Union's  macro-financial  assistance  should  support  Moldova's  commitment  to 
values shared with the Union, including democracy, the rule of law, good governance, 
respect for human rights, sustainable development and poverty reduction, as well as its 
commitment to the principles of open, rules-based and fair trade. 

(18)  A  pre-condition  for  granting  the  Union's  macro-financial  assistance  should  be  that 
Moldova  respects  effective  democratic  mechanisms  –  including  a  multi-party 
parliamentary system – and the rule of law, and guarantees respect for human rights. 
In  addition,  the  specific  objectives  of  the  Union's  macro-financial  assistance  should 
strengthen  the  efficiency,  transparency  and  accountability  of  the  public  finance 
management  systems,  the  governance  and  supervision  of  the  financial  sector  in 
Moldova and promote structural reforms aimed at supporting sustainable and inclusive 
growth,  decent  employment  creation  and  fiscal  consolidation.  Both  the  fulfilment  of 
the  preconditions  and  the  achievement  of  those  objectives  should  be  regularly 
monitored by the Commission and the European External Action Service. 

(19) 

In  order  to  ensure  that  the  Union’s  financial  interests  linked  to  the  Union’s  macro-
financial  assistance  are  protected  efficiently,  Moldova  should  take  appropriate 
measures  relating  to  the  prevention  of,  and  fight  against,  fraud,  corruption  and  any 
other irregularities linked to the assistance. In addition, provision should be made for 
the Commission to carry out checks and for the Court of Auditors to carry out audits. 

(20)  Release of the Union's macro-financial assistance is without prejudice to the powers of 

the European Parliament and the Council as budgetary authority.  

(21)  The  amounts  of  macro-financial  assistance  provided  in  the  form  of  grants  and  the 
amounts of the provision required for macro-financial assistance in the form of loans 
should be consistent with the budgetary appropriations provided for in the multiannual 
financial framework. 

(22)  The  Union's  macro-financial  assistance  should  be  managed  by  the  Commission.  In 
order  to  ensure  that  the  European  Parliament  and  the  Council  are  able  to  follow  the 
implementation  of  this  Decision,  the  Commission  should  regularly  inform  them  of 
developments relating to the assistance and provide them with relevant documents. 

EN 

8 

  EN 

(23) 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Decision, 
implementing powers should be conferred on the Commission. Those powers should 
be  exercised  in  accordance  with  Regulation  (EU)  No 182/2011  of  the  European 
Parliament and of the Council3. 

(24)  The  Union's  macro-financial  assistance  should  be  subject  to  economic  policy 
conditions,  to  be  laid  down  in  a  Memorandum  of  Understanding.  In  order  to  ensure 
uniform conditions of implementation and for reasons of efficiency, the Commission 
should  be  empowered  to  negotiate  such  conditions  with  the  Moldovan  authorities 
under  the  supervision  of  the  committee  of  representatives  of  the  Member  States  in 
accordance  with  Regulation  (EU)  No 182/2011.  Under  that  Regulation,  the  advisory 
procedure should, as a general rule, apply in all cases other than as provided for in that 
Regulation.  Considering  the  potentially  important  impact  of  assistance  of  more  than 
EUR  90  million,  it  is  appropriate  that  the  examination  procedure  be  used  for 
operations  above  that  threshold.  Considering  the  amount  of  the  Union's  macro-
financial  assistance  to  Moldova,  the  examination  procedure  should  apply  to  the 
adoption of the Memorandum of Understanding, and to any reduction, suspension or 
cancellation of the assistance, 

HAVE ADOPTED THIS DECISION: 

1. 

2. 

3. 

Article 1 

The Union shall make macro-financial assistance of a maximum amount of EUR 150 
million available to Moldova ("the Union's macro-financial assistance"), with a view 
to supporting Moldova's economic stabilisation and a substantive reform agenda. Of 
that maximum amount, up to EUR 120 million shall be provided in the form of loans 
and up to EUR 30 million in the form of grants. The release of the Union's macro-
financial  assistance  is  subject  to  the  approval  of  the  Union  budget  for  the  relevant 
year by the European Parliament and the Council. The assistance shall contribute to 
covering Moldova's balance of payments needs as identified in the IMF programme.  

In order to finance the loan component of the Union's macro-financial assistance, the 
Commission  shall  be  empowered  on  behalf  of  the  Union  to  borrow  the  necessary 
funds  on  the  capital  markets  or  from  financial  institutions  and  to  on-lend  them  to 
Moldova. The loans shall have a maximum average maturity of 15 years. 

The  release  of  the  Union's  macro-financial  assistance  shall  be  managed  by  the 
Commission in a manner consistent with the agreements or understandings reached 
between  the  International  Monetary  Fund  (‘IMF’)  and  Moldova,  and  with  the  key 
principles  and  objectives  of  economic  reforms  set  out  in  the  EU-Moldova 
Association  Agreement,  including  the  DCFTA,  agreed  under  the  European 
Neighbourhood Policy. 

The Commission shall regularly inform the European Parliament and the Council of 
developments 
including 
disbursements  thereof,  and  shall  provide  those  institutions  with  the  relevant 
documents in due time. 

the  Union's  macro-financial  assistance, 

regarding 

3 

Regulation  (EU)  No 182/2011  of  the  European  Parliament  and  of  the  Council  of  16 February  2011 
laying down the rules and general principles concerning mechanisms for control  by Member States of 
the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 

EN 

9 

  EN 

                                                 
4. 

5. 

1. 

2. 

3. 

1. 

2. 

3. 

4. 

4 

The Union's macro-financial assistance shall be  made available for  a period  of two 
and  a  half  years,  starting  from  the  first  day  after  the  entry  into  force  of  the 
Memorandum of Understanding referred to in Article 3(1). 

Where the financing needs of Moldova decrease fundamentally during the period of 
the  disbursement  of  the  Union's  macro-financial  assistance  compared  to  the  initial 
projections,  the  Commission,  acting  in  accordance  with  the  examination  procedure 
referred  to  in  Article 7(2),  shall  reduce  the  amount  of  the  assistance  or  suspend  or 
cancel it. 

Article 2 

A  pre-condition  for  granting  the  Union's  macro-financial  assistance  shall  be  that 
Moldova  respects  effective  democratic  mechanisms  –  including  a  multi-party 
parliamentary system – and the rule of law, and guarantees respect for human rights. 

The  Commission  and  the  European  External  Action  Service  shall  monitor  the 
fulfilment  of  this  pre-condition  throughout  the  life-cycle  of  the  Union's  macro-
financial assistance.  

Paragraphs  1  and  2  shall  be  applied  in  accordance  with  Council  Decision 
2010/427/EU4. 

Article 3 

The  Commission,  in  accordance  with  the  examination  procedure  referred  to  in 
Article 7(2), shall agree with the Moldovan authorities on clearly defined economic 
policy  and  financial  conditions,  focusing  on  structural  reforms  and  sound  public 
finances, to which the Union's macro-financial assistance is to be subject, to be laid 
down  in  a  Memorandum  of  Understanding  ("the  Memorandum  of  Understanding") 
which shall include a timeframe for the fulfilment of those conditions. The economic 
policy and financial conditions set out in the Memorandum of Understanding shall be 
consistent  with  the  agreements  or  understandings  referred  to  in  Article 1(3), 
including  the  macroeconomic  adjustment  and  structural  reform  programmes 
implemented by Moldova with the support of the IMF.  

The  conditions  referred  to  in  paragraph  1  shall  aim,  in  particular,  at  enhancing  the 
efficiency,  transparency  and  accountability  of  the  public  finance  management 
systems in Moldova, including for the use of the Union's macro-financial assistance. 
Progress  in  mutual  market  opening,  the  development  of  rules-based  and  fair  trade, 
and  other  priorities  in  the  context  of  the  Union's  external  policy  shall  also  be  duly 
taken into account  when designing the policy measures. Progress  in attaining those 
objectives shall be regularly monitored by the Commission. 

The  detailed  financial  terms  of  the  Union's  macro-financial  assistance  shall  be  laid 
down  in  a  Loan  Agreement  and  a  Grant  Agreement  to  be  concluded  between  the 
Commission and Moldova .  

The  Commission  shall  verify,  at  regular  intervals,  that  the  conditions  referred  to  in 
Article 4(3) continue to be met, including whether the economic policies of Moldova 
are in accordance with the objectives of the Union's macro-financial assistance. For 

Council  Decision  2010/427/EU  of  26 July  2010  establishing  the  organisation  and  functioning  of  the 
European External Action Service (OJ L 201, 3.8.2010, p. 30). 

EN 

10 

  EN 

                                                 
that  verification,  the  Commission  shall  coordinate  closely  with  the  IMF  and  the 
World Bank, and, where necessary, with the European Parliament and the Council. 

Article 4 

Subject to the conditions in paragraph 3, the Union's macro-financial assistance shall 
be made available by the Commission in instalments, each of which shall consist of a 
loan  and  a  grant  element.  The  size  of  each  instalment  shall  be  laid  down  in  the 
Memorandum of Understanding referred to in Article 3.  

The amounts of the Union's macro-financial assistance provided in the form of loans 
shall be provisioned, where required, in accordance with Regulation (EU) 2021/947 
of the European Parliament and of the Council.  

The  Commission  shall  decide  on  the  release  of  the  instalments  subject  to  the 
fulfilment of the following conditions: 

the pre-condition set out in Article 2; 

a  continuous  satisfactory  track  record  of  implementing  a  policy  programme  that 
contains  strong  adjustment  and  structural  reform  measures  supported  by  a  non-
precautionary IMF credit arrangement;  

the  satisfactory  implementation  of  the  economic  policy  and  financial  conditions 
agreed in the Memorandum of Understanding. 

The  release  of  the  second  instalment  shall  not,  in  principle,  take  place  earlier  than 
three  months  after  the  release  of  the  first  instalment.  The  release  of  the  third 
instalment shall not, in principle, take place earlier than three months after the release 
of the second instalment.  

Where the conditions in paragraph 3 are not met, the Commission shall temporarily 
suspend  or  cancel  the  disbursement  of  the  Union's  macro-financial  assistance.  In 
such  cases,  it  shall  inform  the  European  Parliament  and  the  Council  of  the  reasons 
for that suspension or cancellation.  

The  Union's  macro-financial  assistance  shall  be  disbursed  to  the  National  Bank  of 
Moldova.  Subject  to  the  provisions  to  be  agreed  in  the  Memorandum  of 
Understanding,  including  a  confirmation  of  residual  budgetary  financing  needs,  the 
Union  funds  may  be  transferred  to  the  Moldovan  Ministry  of  Finance  as  the  final 
beneficiary.  

Article 5 

The borrowing and lending operations related to the loan component of the Union's 
macro-financial assistance shall be carried out in euro using the same value date and 
shall  not  involve  the  Union  in  the  transformation  of  maturities,  or  expose  it  to  any 
exchange or interest rate risk, or to any other commercial risk. 

Where the circumstances permit, and if Moldova so requests, the Commission may 
take the steps necessary  to  ensure that an early repayment clause is  included in  the 
loan  terms  and  conditions  and  that  it  is  matched  by  a  corresponding  clause  in  the 
terms and conditions of the borrowing operations.  

1. 

2. 

3. 

(a) 

(b) 

(c) 

4. 

5. 

1. 

2. 

EN 

11 

  EN 

 
3. 

4. 

5. 

1. 

2. 

3. 

(a) 

(b) 

5 

6 

7 

8 

9 

Where  circumstances  permit  an  improvement  of  the  interest  rate  of  the  loan  and  if 
Moldova so requests, the Commission may decide to refinance all or part of its initial 
borrowings or may restructure the corresponding financial conditions. Refinancing or 
restructuring operations  shall be carried out  in  accordance  with  paragraphs  1 and 4 
and shall not have the effect of extending the maturity of the borrowings concerned 
or  of  increasing  the  amount  of  capital  outstanding  at  the  date  of  the  refinancing  or 
restructuring. 

All costs incurred by the Union which relate to the borrowing and lending operations 
under this Decision shall be borne by Moldova. 

The  Commission  shall  inform  the  European  Parliament  and  the  Council  of 
developments in the operations referred to in paragraphs 2 and 3. 

Article 6 

The  Union's  macro-financial  assistance  shall  be  implemented  in  accordance  with 
Regulation  (EU,  Euratom)  No  1046/2018  of  the  European  Parliament  and  of  the 
Council5.  

The  implementation  of  the  Union's  macro-financial  assistance  shall  be  under  direct 
management.  

The  Loan  Agreement  and  the  Grant  Agreement  to  be  agreed  with  the  Moldovan 
authorities shall contain provisions:  

ensuring that Moldova regularly  checks that  financing provided  from  the budget  of 
the  Union  has  been  properly  used,  takes  appropriate  measures  to  prevent 
irregularities  and  fraud,  and,  if  necessary,  takes  legal  action  to  recover  any  funds 
provided under this Decision that have been misappropriated; 

ensuring the protection of the Union’s financial interests, in particular providing for 
specific measures in relation to the prevention of, and fight against, fraud, corruption 
and  any  other  irregularities  affecting  the  Union’s  macro-financial  assistance,  in 
accordance  with  Council  Regulation  (EC,  Euratom)  No 2988/956,  Council 
Regulation (EC, Euratom) No 2185/967, Regulation (EU, Euratom) No 883/2013 of 
the  European  Parliament  and  of  the  Council8  and,  for  those  Member  States 
participating  in  enhanced  cooperation  regarding  the  European  Public  Prosecutor’s 
Office,  Council  Regulation  (EU)  2017/19399;  notably,  to  that  end,  the  European 
Anti-Fraud Office (OLAF) shall be expressly authorised to carry out investigations, 

Regulation  (EU,  Euratom)  No 1046/2018  of  the  European  Parliament  and  of  the  Council  of  18  July 
2018 on the financial rules applicable to the general budget of the Union and repealing Regulation (EC, 
Euratom) No 966/2012 (OJ L 193, 30.07.2018, p. 1). 
Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European 
Communities financial interests (OJ L 312, 23.12.1995, p. 1). 

Council  Regulation  (EC,  Euratom)  No 2185/96  of  11 November  1996  concerning  on-the-spot  checks 
and inspections carried out by the Commission to protect the Communities’ financial interests against 
fraud and other irregularities (OJ L 292, 15.11.1996, p. 2). 

Regulation  (EU,  Euratom)  No 883/2013  of  the  European  Parliament  and  of  the  Council  of 
11 September  2013  concerning  investigations  conducted  by  the  European  Anti-Fraud  Office  (OLAF) 
and  repealing  Regulation  (EC)  No 1073/1999  of  the  European  Parliament  and  of  the  Council  and 
Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1). 

Council  Regulation  (EU)  2017/1939  of  12  October  2017  implementing  enhanced  cooperation  on  the 
establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1). 

EN 

12 

  EN 

                                                 
(c) 

(d) 

(e) 

4. 

1. 

2. 

1. 

(a) 

(b) 

(c) 

2. 

including in particular on-the-spot checks and inspections including digital forensic 
its 
operations  and 
representatives to carry out checks, including on-the-spot checks and inspections;  

interviews;  expressly  authorising 

the  Commission,  or 

expressly  authorising  the  Commission  and  the  Court  of  Auditors  to  perform  audits 
during  and  after  the  availability  period  of  the  Union's  macro-financial  assistance, 
including document audits and on-the-spot audits, such as operational assessments; 

ensuring  that  the  Union  is  entitled  to  early  repayment  of  the  loan  and/or  to  full 
repayment  of  the  grant  where  it  has  been  established  that,  in  relation  to  the 
management of the Union's macro-financial assistance, Moldova has engaged in any 
act  of  fraud  or  corruption  or  any  other  illegal  activity  detrimental  to  the  financial 
interests of the Union. 

Ensuring that all costs incurred by the Union that relate to a financial assistance shall 
be borne by Moldova. 

the 

implementation  of 

Before 
the 
Commission  shall  assess,  by  means  of  an  operational  assessment,  the  soundness  of 
Moldova's  financial  arrangements,  the  administrative  procedures,  and  the  internal 
and external control mechanisms which are relevant to the assistance. 

the  Union's  macro-financial  assistance, 

Article 7 

The  Commission  shall  be  assisted  by  a  committee.  That  committee  shall  be  a 
committee within the meaning of Regulation (EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU)  No 
182/2011 shall apply. 

Article 8 

By  30 June  of  each  year,  the  Commission  shall submit  to  the  European  Parliament 
and to the Council a report on the implementation of this Decision in the preceding 
year, including an evaluation of that implementation. The report shall: 

examine the progress made in implementing the Union's macro-financial assistance; 

assess the economic situation and prospects of Moldova, as well as progress made in 
implementing the policy measures referred to in Article 3(1); 

indicate  the  connection  between  the  economic  policy  conditions  laid  down  in  the 
Memorandum  of  Understanding,  Moldova’s  on-going  economic  and  fiscal 
performance  and  the  Commission’s  decisions  to  release  the  instalments  of  the 
Union's macro-financial assistance. 

Not  later  than  two  years  after  the  expiry  of  the  availability  period  referred  to  in 
Article 1(4),  the  Commission  shall  submit  to  the  European  Parliament  and  to  the 
Council  an  ex-post  evaluation  report,  assessing  the  results  and  efficiency  of  the 
completed  Union's  macro-financial  assistance  and  the  extent  to  which  it  has 
contributed to the aims of the assistance. 

EN 

13 

  EN 

Article 9 

This Decision shall enter into force on the third day after its publication in the Official Journal 
of the European Union.  

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

14 

  EN 

  
 
  
 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1.  Title of the proposal/initiative 

1.2.  Policy area(s) concerned 

1.3.  The proposal/initiative relates to: 

1.4.  Objective(s) 

1.4.1. General objective(s) 

1.4.2. Specific objective(s) 

1.4.3. Expected result(s) and impact 

1.4.4. Indicators of performance 

1.5.  Grounds for the proposal/initiative 

1.5.1. Requirement(s)  to  be  met  in  the  short  or  long  term  including  a  detailed 
timeline for roll-out of the implementation of the initiative 

1.5.2. Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this point 'added value of Union involvement' is the value resulting 
from  Union  intervention  which  is  additional  to  the  value  that  would  have  been 
otherwise created by Member States alone. 

1.5.3. Lessons learned from similar experiences in the past 

1.5.4. Compatibility  with  the  Multiannual  Financial  Framework  and  possible 
synergies with other appropriate instruments 

1.5.5. Assessment  of  the  different  available  financing  options,  including  scope  for 
redeployment 

1.6.  Duration and financial impact of the proposal/initiative 

1.7.  Management mode(s) planned 

2.  MANAGEMENT MEASURES 

2.1.  Monitoring and reporting rules 

2.2.  Management and control system(s) 

2.2.1. Justification  of 
mechanism(s), the payment modalities and the control strategy proposed 

the  management  mode(s), 

funding 

the 

implementation 

2.2.2. Information  concerning the risks identified and the internal control  system(s) 
set up to mitigate them 

2.2.3. Estimation  and  justification  of  the  cost-effectiveness  of  the  controls  (ratio  of 
"control  costs  ÷  value  of  the  related  funds  managed"),  and  assessment  of  the 
expected levels of risk of error (at payment & at closure) 

2.3.  Measures to prevent fraud and irregularities 

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

EN 

15 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure 
budget line(s) affected 

3.2.  Estimated financial impact of the proposal on appropriations 

3.2.1. Summary of estimated impact on operational appropriations 

3.2.2. Estimated output funded with operational appropriations 

3.2.3. Summary of estimated impact on administrative appropriations 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party contributions 

3.3.  Estimated impact on revenue 

EN 

16 

  EN 

 
 
 
 
 
 
 
 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal  for  a  Decision  of  the  European  Parliament  and  of  the  Council  providing 
further Macro-financial assistance to the Republic of Moldova 

1.2. 

Policy area(s) concerned in the ABM/ABB structure10  

Policy area:  Economic and Financial Affairs 

Activity: 

International economic and financial affairs 

1.3. 

Nature of the proposal/initiative  

X The proposal/initiative relates to a new action  

  The  proposal/initiative 
project/preparatory action11  

relates 

to  a  new  action 

following  a  pilot 

  The proposal/initiative relates to the extension of an existing action  

 The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objective(s) 

1.4.1.  The  Commission's  multiannual 

strategic  objective(s) 

targeted  by 

the 

proposal/initiative  

 “A  new  boost  for  jobs,  growth  and  investment:  promoting  prosperity  beyond  the 
EU” 

1.4.2. 

Specific objective(s) 

Specific objective No 

“Promoting prosperity beyond the EU”  

ABM/ABB activity(ies) concerned 

The DG ECFIN related activities pertain to:  

(a)  Supporting macro-financial stability and promoting growth-enhancing reforms 
outside the EU, including through regular economic dialogues with key partners and 
by providing macro-financial assistance; and  

(b)  Supporting  the  enlargement  process  and  the  implementation  of  the  EU 
enlargement  and  neighbourhood  policies  and  other  EU  priorities  in  partners  by 
conducting economic analysis and providing policy assessments and advice. 

1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

 

Contribute to covering the external financing needs of Moldova in the context 
of a significant deterioration of their external accounts brought about by the on-
going COVID-19 pandemic.  

10 
11 

ABM: activity-based management; ABB: activity-based budgeting. 
As referred to in Article 54(2)(a) or (b) of the Financial Regulation. 

EN 

17 

  EN 

 
                                                 
 

 

 

Alleviate the partner’s budgetary financing needs. 

Support the fiscal consolidation effort and external stabilisation in the context 
of the IMF programme. 

Support  structural  reforms  aimed  at  improving  the  overall  macroeconomic 
management,  strengthening  economic  governance  and  transparency,  and 
improving conditions for sustainable growth. 

1.4.4. 

Indicators of performance 

Specify the indicators for monitoring progress and achievements. 

The authorities of Moldova will be required to report on a set of economic indicators 
to the Commission services on a regular basis and, provide a comprehensive report 
on the compliance with the agreed policy conditions ahead of the disbursement of the 
instalments of the assistance.  

The  Commission  services  will  continue  to  monitor  public  finance  management, 
following  the  operational  assessment  of  the  financial  circuits  and  administrative 
procedures in Moldova, that was delivered in June 2020. The EU Delegation in the 
partners will also provide regular reporting on issues relevant for the monitoring of 
the assistance. The Commission services will remain in close contact  with the IMF 
and  the  World  Bank  to  benefit  from  their  insights  from  their  on-going  activities  in 
the respective partner.  

An annual report to the Council and European Parliament is foreseen in the proposed 
legislative decision, including an assessment of the implementation of this operation. 
An  independent  ex-post  evaluation  of  the  assistance  will  be  carried  out  within  two 
years after the expiry of the implementation period. 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

The  disbursement  of  the  assistance  will  be  conditional  on  the  fulfilment  of  the 
political  pre-conditions  and a satisfactory track  record in  the implementation  of  the 
economic  programme  between  Moldova  and  the  IMF,  which  was  approved  by  the 
Board  on  [20  December  2021],  following  implementation  by  the  Moldovan 
authorities of a number of prior actions. In addition, the Commission shall agree with 
the authorities of Moldova on specific policy conditions, listed in a Memorandum of 
Understanding.  

The assistance is planned to be disbursed in three instalments. The disbursement of 
the first instalment is expected to take place mid-2022. The second instalment could 
be disbursed in early 2023 whilst the third tranche could follow later that year or in 
the first half of 2024, provided that the policy measures attached to each instalment 
have been implemented in a timely manner. 

EN 

18 

  EN 

1.5.2.  Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this point 'added value of Union involvement' is the value resulting 
from  Union  intervention  which  is  additional  to  the  value  that  would  have  been 
otherwise created by Member States alone. 

The instrument of macro-financial assistance is a policy-based instrument directed to 
alleviate  short-  and  medium-term  external  financial  needs.  In  the  context  of  the 
ongoing COVID-19 pandemic, MFA will help to provide economic policy space for 
the  authorities  to  mount  an  effective  economic  response  to  the  lingering  pandemic 
By helping the partner overcome the economic difficulties amplified by the COVID-
19  pandemic,  the  proposed  MFA  will  contribute  to  promoting  macroeconomic  and 
political stability in the partners. MFA will complement the resources made available 
by  the  international  financial  institutions,  bilateral  donors  and  other  EU  financial 
institutions. In doing so, it will contribute to the overall effectiveness of the financial 
support  provided  by  the  international  community,  as  well  as  of  other  EU  financial 
assistance, including budgetary support operations. 

Furthermore, by providing long-term financing in highly concessional terms, usually 
lower  than  the  rest  of  international  or  bilateral  donors,  the  MFA  programme  is 
expected to help the government to execute its budget without fiscal deviations and 
to contribute to debt sustainability. 

In  addition  to  the  financial  impact  of  the  MFA,  the  proposed  programme  will 
strengthen the governments’ reform commitment and their aspiration towards closer 
relations  with  the  EU,  as  reflected  by  the  Association  Agreement  that  entered  into 
force  in  2016  This  result  will  be  achieved,  inter  alia,  through  appropriate 
conditionality  for  the  disbursement  of  the  assistance.  In  a  larger  context,  the 
programme  will  signal  that  the  EU  is  ready  to  support  partners  in  the  Eastern 
neighbourhood, including Moldova, in moments of economic difficulties.  

1.5.3.  Lessons learned from similar experiences in the past 

Macro-financial  assistance  operations  in  partners  are  subject  to  ex-post  evaluation. 
Evaluations  conducted  thus  far  (on  completed  MFA  programmes),  conclude  that 
MFA  operations  do  contribute,  albeit  sometimes  modestly  and  indirectly,  to  the 
improvement  of  the  external  sustainability,  the  macroeconomic  stability  and  the 
achievement of structural reforms in the partner. In most cases, MFA operations had 
a positive effect on the balance of payments of the partner and helped to relax their 
budgetary constraints. They also led to somewhat higher economic growth. 

1.5.4.  Compatibility  with  the  Multiannual  Financial  Framework  and  possible  synergies 

with other appropriate instruments 

Compatibility with the Multiannual Financial Framework 

In the 2021-2027 multiannual financial framework, the provisioining of MFA loans 
will  be  covered  by  the  External  Action  Guarantee  within  Global  Europe 
(Neighbourhood,  Development  and  International  Cooperation  Instrument).  The 
(indicative) lending capacity foreseen for MFA is sufficient to cover this operation as 
well as other MFA operations being implemented. 

Possible synergies with other appropriate instruments 

The EU is among the major donors to Moldova, supporting their economic, structural 
and  institutional  reforms  as  well  as  civil  society.  EU  financial  support  to  Moldova 

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over  2014-2020  amounted  to  EUR  518,15  million  (the  2021-2027  Multiannual 
Indicative Programme (MIP), which is under preparation). In this context, this MFA 
programme  complements  other  EU  external  actions  or  instruments  used  to  support 
Moldova. It is also aligned with the new Global Europe instrument (Neighbourhood, 
Development and International Cooperation instrument) and the instrument for Pre-
accession assistance (IPA-III) for 2021-2027.  

The key value added of the MFA in comparison to other EU instruments would be to 
help create a stable macroeconomic framework, including by promoting a sustainable 
balance-of-payments  and  budgetary  situation,  and  an  appropriate  framework  for 
advancing structural reforms. MFA does not provide regular financial support and is 
to  be  discontinued  as  soon  as  the  partner’s  external  financial  situation  has  been 
brought back onto a sustainable path.  

MFA would also  be complementary to  interventions envisaged by the international 
community,  in  particular  the  adjustment  and  reform  programmes  supported  by  the 
IMF and the World Bank. 

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

By  using  loans,  this  MFA  operation  increases  the  effectiveness  of  the  EU  budget 
through the leverage effect and provides for the best cost-efficient option.  

The  Commission  is  empowered  to  borrow  funds  from  capital  markets  on  behalf  of 
both  the  European  Union  and  Euratom  using  the  guarantee  of  the  EU  budget.  The 
aim is to obtain funds from the market at the best available rates due to the top credit 
status  (AAA-rated  by  Fitch,  Moody's  and  DBRS,  AA  by  S&P,  all  with  stable 
outlook)  of  the  EU/Euratom  and  then  on-lend  them  to  eligible  borrowers  in  the 
context of lending under the EFSM, BoP, MFA and to Euratom projects. Borrowing 
and  lending  is  conducted  as  a  back-to-back  operation,  ensuring  that  the  EU  budget 
does not take any interest rate or foreign exchange risk. The target of obtaining funds 
at  the  best  available  rates  for  borrowing  and  lending  activities  has  been  achieved 
because those rates are in line with peer institutions (EIB, EFSM, and ESM). 

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1.6. 

Duration and financial impact of the proposal/initiative 

X limited duration  

–    in effect from 2022 to 2024  

–    Financial impact from 2022 to 2024 for commitment appropriations and from 

2022 to 2025 for payment appropriations.  

 unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Management mode(s) planned12  

X Direct management by the Commission 

–  X by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated; 

–   international organisations and their agencies (to be specified); 

–   the EIB and the European Investment Fund; 

–   bodies referred to in Articles 70 and 71 of the Financial Regulation; 

–   public law bodies; 

–   bodies governed by private law with a public service mission to the extent that 

they are provided with adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  are  provided  with 
adequate financial guarantees; 

–    persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

– 

If more than one management mode is indicated, please provide details in the ‘Comments’ section. 

Comments  

12 

Details of management modes and references to the Financial Regulation may be found on the 
BudgWeb site: 
https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx  

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

The  actions  to  be  financed  under  this  Decision  will  be  implemented  under  direct 
management  by  the  Commission  from  headquarters  and  with  support  of  the  Union 
delegations.  

This assistance is of macroeconomic nature and its design is consistent with the IMF-
supported programme. The monitoring of the action by the Commission services will 
take  place  on  the  basis  of  progress  in  the  implementation  of  the  IMF  arrangement 
and the implementation of specific reform measures to be agreed with the authorities 
of  the  partners  in  a  Memorandum  of  Understanding  with  a  frequency  that  is 
consistent with the number of instalments (See also point 1.4.4).  

2.2.  Management and control system(s)  

2.2.1. 

Justification of the management mode(s), the funding implementation mechanism(s), 
the payment modalities and the control strategy proposed 

The  actions  to  be  financed  under  this  Decision  will  be  implemented  under  direct 
management  by  the  Commission  from  headquarters  and  with  support  of  the  Union 
delegations.  

MFA disbursements are dependent on successful reviews, and tied to the fulfilment 
of  conditionality  attached  to  each  operation.  The  implementation  of  conditions  is 
closely  monitored  by  the  Commission,  in  close  coordination  with  the  Union 
Delegations. 

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

Risks identified 

There  are  fiduciary,  policy  and  political  risks  related  to  the  proposed  MFA 
operations.  

There  is  a  risk  that  the  MFA  could  be  used  in  a  fraudulent  way.  As  MFA  is  not 
designated to specific expenses (contrary to project financing, for example), this risk 
is  related  to  factors  such  as  the  general  quality  of  management  systems  in  the 
partner’s  Central  Bank  and  the  Ministry  of  Finance,  administrative  procedures, 
control and oversight functions, the security of IT systems and the appropriateness of 
internal and external audit capabilities. 

A  second  risk  stems  from  the  possibility  that  the  partner  will  fail  to  service  the 
financial liabilities towards the EU stemming from the proposed MFA loans (default 
or  credit  risk),  which  could  be  caused  for  example  by  a  significant  additional 
deterioration of the balance of payments and fiscal position of the partner. 

Internal control systems 

The  macro-financial  assistance  will  be  liable  to  verification,  control  and  auditing 
procedures under the responsibility of the Commission, including the European Anti-
Fraud Office (OLAF), and by the European Court of Auditors as foreseen by Article 
129 of the Financial Regulation 

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Ex-ante:  Commission  assessment  of  management  and  control  system  in  the 
beneficiary country. For each beneficiary country, an ex-ante operational assessment 
of the financial circuits and control environment is carried out by the Commission, if 
necessary,  with  technical  support  from  consultants.  An  analysis  of  accounting 
procedures, segregation of duties and internal/external audit of the Central bank and 
the Ministry of Finance are carried out to ensure a reasonable level of assurance for 
sound  financial  management.  Should  weaknesses  be  identified,  they  are  translated 
into  conditions,  which  have  to  be  implemented  before  the  disbursement  of  the 
assistance. Also, when needed, specific arrangements for payments (e.g. ring-fenced 
accounts) are put in place. 

During  implementation:  Commission  checks  of  periodic  partner  declarations.  The 
payment is subject to (1) monitoring by DG ECFIN staff, in close coordination with 
the  EU  Delegations  and  with  the  external  stakeholders,  like  the  IMF,  of  the 
implementation of the agreed conditionalities, and (2) the normal control procedure 
provided  for  by  the  financial  circuit  (model  2)  used  in  DG  ECFIN,  including  the 
verification  by  the  financial  unit  of  the  fulfilment  of  conditions  attached  to  the 
disbursement of the assistance mentioned above. The disbursement relating to MFA 
operations may be subject to additional independent ex-post (documentary and/or on-
the-spot)  verifications  by  officials  of  the  ex-post  control  team  of  the  DG.  Such 
verifications  may  also  be  initiated  at  the  request  of  the  responsible  AOSD. 
Interruptions  and  suspensions  of  payments,  financial  corrections  (implemented  by 
Commission), and recoveries may be practiced where needed (it has not occurred so 
far), and are explicitly foreseen in the financing agreements with the partners. 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio of "control 
costs ÷ value of the related funds managed"), and assessment of the expected levels 
of risk of error (at payment & at closure)  

The control systems in place, such as the ex-ante operational assessments or the ex-
post assessments, ensured an effective error rate for the MFA payments of 0%. There 
are no known  cases  of  fraud, corruption or illegal  activity. MFA operations have  a 
clear  intervention  logic,  one  that  allows  the  Commission  to  evaluate  their  impact. 
The  controls  enable  the  confirmation  of  assurance  and  of  attainment  of  policy 
objectives and priorities.  

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy. 

To mitigate the risks of fraudulent use several measures have been and will be taken:  

First,  the  Loan  Agreement  will  comprise  a  set  of  provisions  on  inspection,  fraud 
prevention, audits and recovery of funds in case of fraud or corruption. It is further 
envisaged  that  a  number  of  specific  policy  conditions  will  be  attached  to  the 
assistance,  including  in  the  area  of  public  finance  management,  with  a  view  to 
strengthening  efficiency,  transparency  and  accountability.  Also,  the  assistance  will 
be paid to a specific account of the Central Bank of the partner.  

Moreover, in line with the requirements of the Financial Regulation, the Commission 
services  have  carried  out  an  Operational  Assessment  of  the  financial  and 
administrative  circuits  of  Moldova  to  ascertain  that  the  procedures  in  place  for  the 
management of programme assistance, including MFA, provide adequate guarantees. 
The  assessment  was  carried  out  –in  2020,  and  covers  areas  such  as  budget 
preparation  and  execution,  public  internal  financial  control,  internal  and  external 

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audit,  public  procurement,  cash  and  public  debt  management,  as  well  as  the 
independence of the central bank. Developments in that area will be further closely 
monitored by the EU Delegations in the respective partner. The Commission is also 
using  budget  support  assistance  to  help  the  respective  partners  improve  their  PFM 
systems, and these efforts are strongly supported by other donors. 

Finally, the assistance will be liable to verification, control and auditing procedures 
under  the  responsibility  of  the  Commission,  including  the  European  Anti-Fraud 
Office (OLAF), and the European Court of Auditors as foreseen by Article 129 of the 
Financial Regulation. 

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Heading of 
multiannual 
financial 
framework 

Number  

Type of  
expenditure 

Diff./Non-
diff.13 

Contribution  

from 
EFTA 
countries
14 

from 
candidate 
countries15 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
the Financial 
Regulation  

14.02.01.70.06 [MFA loans – EAG] 

Diff. 

NO 

NO 

NO 

14.20.03.01 [MFA Grants] 

Diff. 

NO 

NO 

NO 

NO 

NO 

  New budget lines requested – Not applicable 

13 
14 
15 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

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3.2. 

Estimated financial impact of the proposal on appropriations  

3.2.1. 

Summary of estimated impact on operational appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–  X  The proposal/initiative requires the use of operational appropriations, as explained below: 

Heading of multiannual financial  
framework  

6 

Heading 6 - 'Neighbourhood and the World'  

EUR million (to three decimal places) 

DG: ECFIN 

 Operational appropriations  

Budget line16  

Commitments 

14.02.01.70.06 [MFA loans – EAG] 

Payments 

Budget line  

14.20.03.01 [MFA Grants] 

Commitments 

Payments 

(1a) 

(2a) 

(1b) 

(2b) 

Appropriations  of  an  administrative  nature  financed  from  the 
envelope of specific programmes17  

Budget line  
14.20.03.01  

TOTAL appropriations 
for DG ECFIN 

(3) 

=1a+1b 
+3 

=2a+2b 

+3 

Commitments 

Payments 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Year 
2025 

TOTAL 

10.8 

10.8 

30 

20 

10 

40.8 

30.8 

10 

0.15 

0.15 

   0.15 

10.8 

10.8 

30 

30 

0.15 

40.95 

40.95 

16 
17 

EN 

According to the official budget nomenclature. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

26 

EN 

 
 
 
 
 
                                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL operational appropriations  

Commitments 

Payments 

  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

40.8 

30.8 

10 

TOTAL appropriations  
under HEADING 6 
of the multiannual financial 
framework 

Commitments 

=4+ 6 

40.8 

Payments 

=5+ 6 

30.8 

10 

40.8 

40.8 

0.15 

40,95 

40,95 

0.15 

0.15 

0,15 

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27 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
If more than one operational heading is affected by the proposal / initiative, repeat the section above: (EUR million (to three decimal places)) 

Heading of multiannual financial  
framework  

7 

Heading 7 – ‘European public administration’ 

This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative 
Financial Statement (Annex V to the internal rules), which is uploaded to DECIDE for interservice consultation purposes.  

DG: ECFIN 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Year 
2025 

TOTAL 

Human Resource 

Other administrative expenditure 

TOTAL appropriations  
under HEADING 7 
of the multiannual financial 
framework 

0.034 

0.044 

0.022 

0.011 

0.011 

0.020 

0.010 

0.034 

0.064 

0.032 

0.011 

0.011 

0.122 

0.030 

0.152 

0.034 

0.064 

0.032 

0.011 

0.011 

0.152 

Appropriatio
ns 

(Total 
commitments 
Total 
= 
payments) 

TOTAL appropriations  
under HEADINGS 1 to 7 
of the multiannual financial framework 
(Reference amount) 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Year 
2025 

Commitmen
ts 

=4+ 6 

0.034 

30.864 

10.032 

0.011 

0.161 

Payments 

=5+ 6 

0.034 

30.864 

10.032 

0.011 

0.161 

TOTAL 

41,102 

41,102 

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3.2.2.  Estimated output funded with operational appropriations  

Commitment appropriations in EUR million (to three decimal places) 

   Indicate 
objectives 
and outputs  

 

Year 2021 

Year 2022 

Year 2023 

Year 2024 

Year 2025 

TOTAL 

Type18 

Number  Cost  Number  Cost  Number  Cost  Number  Cost  Number  Cost 

Total 
number 

Total cost 

- Output 1 

- Output 2 

Grant 
disbursements 
Provisioning of the 
External Action 
Guarantee 

- Output 3 

Ex-post evaluation 

Subtotal for specific objective No 1 

TOTAL COST 

- 

- 

- 

- 

1 

3 

1 

1 

SPECIFIC OBJECTIVE NO 119 

20 

2 

10 

10.8 

20 

30.8 

5 

5 

10 

10 

- 

- 

- 

- 

1 

1 

1 

0.15 

0.15 

0.15 

3 

3 

1 

7 

7 

30 

10.8 

0.15 

30.15 

40,95 

18 
19 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.).   
As described in point 1.4.2. ‘Specific objective(s)…’   

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3.2.3. 

Summary of estimated impact on administrative appropriations  

–  X  The  proposal/initiative  requires  the  use  of  appropriations  of  an 

administrative nature, as explained below: 

EUR million (to three decimal places) 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Year  
2025 

TOTAL 

HEADING 7 
of the multiannual 
financial framework 

Human resources  

0.033 

0.069 

0.041 

0.003 

0.025 

0.171 

0.020 

0.010 

0.033 

0.089 

0.051 

0.003 

0.025 

0.030 

0,201 

Other administrative 
expenditure  

Subtotal HEADING 7 
of the multiannual 
financial framework  

Outside HEADING 720  
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 7 
of the multiannual 
financial framework  

TOTAL 

0.033 

0.089 

0.051 

0.003 

0.025 

0,201 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 
appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the 
DG. 

20 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU programmes 
and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

30 

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3.2.3.1.  Estimated requirements of human resources  

–  X  The proposal/initiative requires the use of human resources, as explained 

below: 

Estimate to be expressed in full time equivalent units 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Year 
2025 

 Establishment plan posts (officials and temporary staff) 

20 01 02 01 (Headquarters and Commission’s Representation 
Offices) 

0.100 

0.250 

0.150 

0.010 

0.100 

20 01 02 03 (Delegations) 

01 01 01 01  (Indirect research) 

 01 01 01 11 (Direct research) 

Other budget lines (specify) 

 External staff (in Full Time Equivalent unit: FTE)21 

20 02 01 (AC, END, INT from the ‘global envelope’) 

0.200 

0.350 

0.200 

0.010 

0.100 

20 02 03 (AC, AL, END, INT and JPD in the delegations) 

XX 01  xx yy zz  22 

- at Headquarters 

- in Delegations  

01 01 01 02 (AC, END, INT - Indirect research) 

 01 01 01 12 (AC, END, INT - Direct research) 

Other budget lines (specify) 

TOTAL 

XX is the policy area or budget title concerned. 

0.300 

0.600 

0.350 

0.020 

0.200 

The human resources required will be met by staff from the DG who are already assigned to management of the 
action  and/or  have  been  redeployed  within  the  DG,  together  if  necessary  with  any  additional  allocation  which 
may  be  granted  to  the  managing  DG  under  the  annual  allocation  procedure  and  in  the  light  of  budgetary 
constraints. 

Description of tasks to be carried out: 

Officials  and 
staff 

temporary 

Director  Dir.  D:  Supervise  and  manage  the  operation,  liaise  with  Council  and 
Parliament for the adoption of the Decision and the approval of the Memorandum of 
Understanding  (MoU),  negotiate  the  MoU  with  the  authorities  of  Moldova,  review 
reports, lead missions and assess progress with conditionality compliance. 

HoU/DHoU  Dir.  D:  Assist  the  Director  in  managing  the  operation,  liaising  with 
Council and Parliament for the adoption of the Decision and the approval of the MoU, 
negotiating  with  the  Moldovian  authorities  the  MoU  and  Loan  Facility  Agreement 
(together  with  DG  BUDGET),  reviewing  reports  and  assessing  progress  with 
conditionality compliance.  

DG BUDGET (Units E1, E3 under the supervision of the Director): Prepare the Loan 
Facility  Agreement  (LFA),  negotiate  it  with  the  authorities  of  Moldova  and  have  it 
approved by the responsible Commission services and signed by both parties. Follow 
up  the  entry  into  force  of  the  LFA.  Prepare  the  Commission  decision(s)  on  the 
borrowing transaction(s), follow up the submission of the Request(s) for Funds, select 

21 

22 

AC=  Contract  Staff;  AL  =  Local  Staff;  END=  Seconded  National  Expert;  INT  =  agency  staff; 
JPD= Junior Professionals in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

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External staff 

the  banks,  prepare  and  execute  the  funding  transaction(s)  and  disburse  the  funds  to 
Moldova.  Carry  out  the  back-office  activities  to  follow  up  the  reimbursement  of  the 
loan(s). Prepare the corresponding reports on these activities. 

Desk economists, MFA Sector (Dir. D): Prepare the Decision and MoU, liaise with the 
authorities  and  the  IFIs,  conduct  review  missions,  prepare  Commission  staff  reports 
and  Commission  procedures  related  to  the  management  of  the  assistance,  liaise  with 
external experts for the operational assessment and the ex-post evaluation.  

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3.2.4.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

–  X  can be fully financed through redeployment within the relevant heading of 

the Multiannual Financial Framework (MFF). 

3.2.5.  Third-party contributions  

The proposal/initiative: 

–  X  does not provide for co-financing by third parties 

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33 

  EN 

 
3.3. 

Estimated impact on revenue  

–  X  The proposal/initiative has no financial impact on revenue. 

EN 

34 

  EN