Recean about the €1.9 billion growth plan: These are highly favorable terms to fund our economic development
Prime Minister Dorin Recean asserts that the €1.9 billion financial package provided by the European Union will contribute to a minimum annual economic growth of 5% for the Republic of Moldova. He stated that the funds will be utilized for modernizing institutions, enhancing infrastructure, and supporting key sectors, with the anticipated impact directly improving the quality of life for citizens.
The European assistance is divided into two components: €400 million in non-repayable grants and €1.5 billion as a 40-year loan with a 10-year grace period and interest rates ranging from 0.1% to just over 3%.
"These are extremely advantageous conditions for us to finance our economic development plan. Why? Because citizens do not want to wait 50 years for financial resources to invest in our development. Our citizens want to live like those in Europe today. Therefore, we need to mobilize financial resources and invest them wisely," explained the Prime Minister.
The growth plan has two major components: an agenda for structural reforms and massive investments in infrastructure and the economy. The reform agenda includes seven pillars: business development, support for agriculture, modernization of tax administration, improvements to education, health, and social services, strengthening energy security, and promoting a green transition.
On the investment side, Recean provided examples such as rehabilitating at least 30 kilometers of the M5 road, constructing a Regional Hospital in Balti, implementing a national afforestation program covering 175,000 hectares, and modernizing centralized irrigation systems for farmers along the Prut and the Nistru rivers.
The Prime Minister emphasized that this financial support resulted from the Republic of Moldova's progress towards European integration.
"Both components of the growth plan—reform and investments—will lead to economic growth, higher wages, and a better quality of life. This is obvious, especially as we work to create modern institutions," Recean stated.
He reiterated the importance of using these funds responsibly and transparently so that citizens clearly understand where and how the money is being invested.
"The European Union has offered us this generous support, and it is now our responsibility to work together to achieve our national objective: a better life in the Republic of Moldova."
Today, the Government approved the Reform Agenda, a key document that will guide the country's economic and social transformation and serve as the foundation for the Growth Plan. Its implementation will allow access to the €1.9 billion of support the European Union provides. Additionally, the Cabinet of Ministers approved the signing of the Loan Agreement.
The Growth Plan for the Republic of Moldova is an initiative launched by the European Commission in October 2024. It consists of a €1.9 billion financial package to support the country's reforms, investments, and economic integration into the European Union. This is the EU's most extensive support program ever offered to Moldova and is based on the Reform and Growth Facility, a mechanism created explicitly for candidate countries.
We remind you that the European Parliament voted on March 11 to approve the final version of the €1.9 billion Growth Plan for the Republic of Moldova.
