The Republic of Moldova in state management used foreign funds in the amount of US$2.98 billion in 2021-2023, which represents 53.7 billion lei at the current exchange rate. The amount represents 18% of the budget expenditure in the same period, according to an article signed by MP Radu Marian. The grants, i.e. nonreimbursable financing, came to 11.4 billion lei, IPN reports.
According to the MP, the largest sources of external financing remain the European Union, together with the EU countries, the European financial institutions, such as the EBRD, the EIB, as well as the International Monetary Fund, the World Bank, the U.S., Japan. 73% of all the money disbursed in the last 11 years came after 2021.
Radu Marian noted that the financing can be divided into two main categories: budget support - 67% of the entire amount (35.5 billion), and investment projects - 33% (17.5 billion).
The external assistance was crucial in covering the expenses associated with the compensation of energy bills during the energy crisis caused by Gazprom’s blackmail. In the 2022–2023 heating season, most of the budget for on-bill compensation was covered by money provided by foreign partners. At the same time, between 2021 and 2024, funds were disbursed for 196 concrete financing projects in all areas – from the social sector to infrastructure.
“We must all understand that without external funding, it will be difficult to develop quickly and to live according to the standards of the European Union. We are a small country, without natural resources, such as oil, natural gas, which we could sell to other states,” Radu Marian also wrote.
He noted that Moldova’s state debt is at a normal level compared to the countries of the region. According to experts, comparing the country’s debt with the Gross Domestic Product is the most effective method of assessing this debt. Relative to the GDP, Moldova’s public debt represents 34.8%.
