Germany ups financial support to Moldova amid refugee influx

Germany announced on Tuesday that it would give Moldova a loan of €50 million ($55 million) on top of a support package of €40 million to help it cope with the influx of refugees from neighbouring war-torn Ukraine, reported dpa.

Chancellor Olaf Scholz announced the loan move at an international donors' conference in Berlin for the former Soviet republic, government spokesman Steffen Hebestreit said. The conference was jointly organized with France and Romania.

The new credit line was aimed not only at helping with Ukrainian refugees, but also to provide broader financial support with, for example, increased energy costs, Hebestreit said.

"No country has so far taken in more refugees from Ukraine in relation to its population than the Republic of Moldova," he said.

Development Minister Svenja Schulze earlier increased the amount being given as a support package to Moldova by €5 million, to €40 million.

Moldova was particularly vulnerable during the Russia-Ukraine conflict because it was almost 100% dependent on Russian gas, she said. Gas prices had risen almost eightfold in the past six months, and inflation had risen to 18%, she said.

The financial support includes funds for the development of social infrastructure, schools, kindergartens and accommodation in municipalities that take in refugees. Another focus is support for the integration of Ukrainian trainees into the country's vocational training system, she said.