The Republic of Moldova has recently received a substantial amount of foreign assistance from international organisations and foreign governments in the form of loans, grants and humanitarian aid in order to overcome the consequences of the energy crisis and the regional security crisis, as well as for investment projects. In this context, it is more important than ever to ensure public access to data on the use of external assistance, as well as the conditions under which funding is provided. Transparency gives society the opportunity to hold the Government accountable in order to ensure a sound management of the assistance received and to protect the public interest. This article identifies problems related to public access in the Republic of Moldova to information on external assistance received and proposes measures to overcome them.

Why is it important to increase access to information on external assistance?

Transparency of information about loans and other forms of external assistance is vital to ensure a responsible use of funds received and to prevent the waste or misuse of public resources. Civil society needs transparency in order to hold the Government accountable for the amount of debt contracted, the terms of contracts, the allocation of resources. Transparency ensures that investors and lenders have a clear idea of the public debt burden, which reduces the risk associated with lending and uncertainty premiums and therefore allows the Government to borrow more cheaply. Transparency is also a precondition for effective debt management by the Government, it helps to define and implement responsible borrowing strategies by identifying and eliminating harmful past practices.

Public access to external assistance data should cover the following key issues:

• The process of contracting the financing: the circumstances under which the external loans were contracted, the contracting parties and their relations (including possible power imbalances that may affect financial relations), the financing instruments, the contractual terms (financial conditions, but also other conditionalities such as policy conditions, the obligation to contract suppliers from the lender's country, etc.);
• Object of funding: how resources were allocated and used; results of funded projects; their social, economic or environmental impact; impact of related conditionalities;
• Impact of debt servicing: how debt repayments and interest/fee payments affect the public budget and the government's ability to meet obligations, provide public services or invest.

It is important not only to make sure that information on external assistance is published, but also that the published data are accessible. Presentation of information in formats unsuitable for data processing, fragmentation of information systems affects the accessibility of information and inhibits its integration or combination with other data.

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The analysis was conducted by Expert-Grup Independent Think-Tank as part of the ‘Socially Responsible Management of External Financing’ initiative, in partnership with the Institute for Strategic Initiatives (IPIS), with the support of the Soros Foundation Moldova.