- EBRD approves new Country Strategy for Moldova for 2023-28
- Strategy guides EBRD investment and policy for EU candidate Moldova for five years
- Strategy’s three priorities are energy resilience, supporting private sector and infrastructure
The European Bank for Reconstruction and Development (EBRD)’s Board of Directors has approved a new Country Strategy for Moldova, guiding its investment and policy work with the European Union candidate country for the next five years.
The EBRD’s three strategic priorities for Moldova in 2023-28 will be strengthening energy resilience and security and promoting a greener economy; supporting competitive and inclusive private sector development, more resilient financial infrastructure and improved governance; and improving inclusive infrastructure delivery to support growth and enhance connectivity and trade.
Since the previous Country Strategy was adopted in 2017, Moldova has made advances in adopting the political principles the EBRD works by, to foster the transition towards open market-oriented economies and to promote private and entrepreneurial initiative.
The pro-reform authorities that have been in power since 2020-21 have embarked on an ambitious reform programme, driven by Moldova’s European aspirations and aiming to build institutions and infrastructure, combat corruption and strengthen the rule of law.
However, progress has been disrupted by the energy crisis and war on Ukraine. Record energy prices -- with gas prices increasing threefold -- and soaring inflation exceeding 30 per cent have significantly burdened the economy, with a major influx of refugees further straining public services and infrastructure. Amid rising public deficits, the macroeconomic situation has worsened, with GDP projected to contract by 4.7 per cent in 2022.
These pressures have exacerbated this small country’s existing vulnerabilities. But the decision of the EU last June to grant Moldova candidate status, along with Ukraine, should provide a strong impetus to accelerate critical reforms.
“At a time of uncertainty for Moldova, the EBRD reaffirms its commitment to support the country, its economic resilience and its European aspirations in the clearest and strongest possible way. Through its investments in the private sector and infrastructure and its support for the reform agenda, the Bank confirms its role as a leading international player in the country,” said EBRD President Odile Renaud-Basso.
Moldova is one of the countries neighbouring Ukraine that has benefitted from strong support of the EBRD in 2022 to buffer the region’s economy against the impacts of the war. One key investment was a €300 million loan last June to boost energy security through strategic gas acquisitions. With record investment totalling over €500 million in 2022, focusing on energy security and the private sector, the EBRD has shown its unwavering commitment to the country in difficult circumstances.
Together with the European Commission and other international partners, the EBRD is also investing in the EU-Ukraine Solidarity Lanes, strengthening key regional transport routes and strengthening the trade links connecting Ukraine and Moldova with the EU. The Bank is also actively contributing to the multilateral Moldova Support Platform (MSP), providing concrete political, financial and technical assistance to help it overcome the challenges it faces, particularly those resulting from the war.
The EBRD, Moldova’s largest institutional investor and present in the country for the past three decades, has invested €2 billion in the country, much of it to support infrastructure as well as stabilise the banking sector.