The WB will provide $159.24 million to Moldova for emergency response, resilience building and competitiveness enhancing.
Specifically, The World Bank’s Board of Executive Directors has approved an Emergency Response, Resilience and Competitiveness Development Policy Operation (DPO) in the amount of $159.24 million for the Republic of Moldova. This budget support will help the Moldovan government mitigate the impact of the war in Ukraine on refugees and households, and strengthen resilience and competitiveness to reduce vulnerability to future shocks. As the WB report notes, Moldova has suffered numerous shocks in recent years, from the COVID-19 pandemic to a severe drought that reduced agricultural production by 34% in 2020 and the European gas crisis that pushed gas prices up about 400% in the second half of 2021. As Moldova began to recover from these shocks, the social and economic effects of the war in Ukraine threatened its short-term economic recovery and long-term economic prospects. The head of the World Bank's office in Moldova, Inguna Dobraja, said the series of shocks that have recently hit Moldova have seriously affected its citizens, especially poor families and small businesses. "While responding to the unprecedented and immediate challenges posed by the war in Ukraine, the Government is committed to addressing the unfinished development reform agenda to support the country’s economic, social, and structural transformation. This budget support will help the government respond to the country’s immediate needs, while maintaining momentum in the long-term agenda of building resilience and enhancing competitiveness in Moldova," she said. The operation, approved by the WB, is part of a package of coordinated financial assistance from international partners, including the IMF, EU and EBRD, prepared in response to Moldova's current socio-economic emergency. The DPO includes financing from the International Bank for Reconstruction and Development in the form of a $43 million loan and a $9.24 million concessional contribution on a non-recourse basis under the Global Concessional Financing Facility (GCFF), as well as a $107 million loan from International Development Association. The French Development Agency is expected to provide 60 million euros in parallel financing to Moldova. Since Moldova joined the World Bank in 1992, More than $1.3 billion has been disbursed in over 60 operations in the country. The World Bank's portfolio currently includes 12 active projects with a total commitment of $638.1 million. Areas of support include regulatory reform and business development, modernization of public services, tax administration, cadastre, education, roads, health and social sectors including response to the COVID-19 emergency, agriculture, water and sanitation, energy. // 03.06.2022 - InfoMarket.
