Of this total, up to €30 million would be provided in grants and up to €120 million in medium-term loans at favourable financing conditions. The new MFA would build on the two previous MFA operations through which the EU has disbursed a total of €160 million to Moldova since 2017. Moldova continues to face many challenges, notably the need to tackle corruption and governance problems that have contributed to a weakening of the country’s fiscal and balance of payments positions over the past several years, prompting support from international partners. The past year has been equally challenging for the country. Moldova has recently faced a significant energy crisis, which coupled with the post-pandemic recovery has further implications for the economic stability and outlook in Moldova going forward. The proposed EU MFA, which requires adoption by the European Parliament and the Council before it can enter into force and disbursements can be made, would accompany the country's new IMF programme, approved on 20 December 2021.