External Assistance Monitor No. 1: “The Importance of External Financing in Conditions of Economic and Security Crisis”
Authors
Adrian Lupușor
Executive Director
Alexandru Fală
Programme Director, "Macroeconomics, Forecasting and Economic Modelling"
Dorina Baltag
Ecaterina Rusu
Programme Director, "Trade Policy and Free Trade Area"
Marina Soloviova
Programme Director, "Economic Policy"
Stas Madan
Programme Director, "Business Environment and SMEs"
Victoria Olari
Automatically translated summary. The full text is available in Romanian.
The Independent Think Tank “Expert-Grup” and the Institute for Strategic Initiatives have published the first External Assistance Monitor for the Republic of Moldova. It examines how external financing, received mainly in 2021, helped the country withstand energy, pandemic and security crises, with support from Fundația Soros Moldova.
According to the Monitor, the political changes of 2021 brought fresh momentum to Moldova's relations with development partners, especially the IMF and the European Commission, which strengthened the country's resilience to the energy, pandemic and security crises that followed.
In 2021 the public sector received external assistance in the form of loans and SDR allocations worth USD 613 million, 10% more than in 2020, with a substantial rise in drawdowns in the second half of the year. Grants, technical assistance, humanitarian aid and capital transfers totalled USD 201 million, double the 2020 level. The main driver was a EUR 60 million European Commission grant, received at the end of the year, to ease the socio-economic impact of higher natural gas prices. The full version covers the volume of external financing, the risks involved and the capacity to attract additional support.
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