CHISINAU (Moldova), May 9 (SeeNews) – Moldova and the European Union (EU) on Friday signed the agreement for the Growth Plan for Moldova, part of a 1.9 billion euro ($2.2 billion) Reform and Growth Facility support package, Moldovan prime minister Dorin Recean said.

The Growth Plan includes a reform agenda aimed at modernising institutions, along with investments designed to strengthen the national economy and improve quality of life, Recean said in a social media post.

“We are talking about concrete projects, country projects, for which we would need decades of implementation if we did not benefit from the help of the European Union,” Recean noted in a live broadcast of a press briefing.

The financial support package was first approved by the government on May 7 and is the largest financial support ever offered by the EU to the Republic of Moldova, Recean said in a separate social media post at the time.

The package includes two components: 400 million euro in non-repayable grants and 1.5 billion euro in loans. According to Recean, the loans will be disbursed over 40 years, with a 10-year grace period during which no repayments are required. Interest rates will range from 0.1% to just over 3%.

To access funding under the plan, Moldova must carry out projects such as building a regional hospital in Balti, upgrading roads, restoring forests, improving irrigation, and supporting entrepreneurs and young workers.

According to Recean, the financial support has become available due to Moldova’s progress on its EU accession path and is expected to drive economic growth of around 5% by 2028, leading to higher wages, modern institutions, and an overall better standard of living.

Moldova’s future accession to the European Union won the support of just over half of the voters in a referendumheld on October 20.

($ = 0.8799 euro)