The WB will provide Moldova with $211 million in new budget support, including a €92.1 million loan (the equivalent of $100 million) and a $111 million grant.
This is provided for by the financing agreements that Moldova signed with the International Bank for Reconstruction and Development (part of the World Bank Group) and the Multi-Donor Trust Fund to implement the "Moldova, Emergency Response, Resilience and Competitiveness. Development Policy Operation 2". The parties signed the agreements on June 9 and 12, respectively, and the government approved their ratification on June 14. According to the signed documents, the World Bank will provide additional assistance to Moldova for economic stabilization and growth, including the implementation of social and economic programs, which are part of the reform program of the Moldovan government. The new funding program will be offered to Moldova as budget support for a total of $211 million, including a €92.1 million loan (equivalent of $100 million) channelled through the International Bank for Reconstruction and Development and a grant of $111 million, of which $25 million is provided through the Global Concessional Financing Facility (GCFF) and $86 million through the Multi-Donor Trust Fund. The loan has a maturity of 21 years, including a grace period of 3 years, the interest rate is variable, and the commitment fee is 0.25% and is calculated on the unpaid amount, the lump sum fee will be 0.25% of the loan amount. Loan servicing costs are paid from the state budget. To get the money, Moldova needs to implement 8 sub-actions concerning the implementation of the Action Plan to ensure a better legal status for Ukrainian refugees and their better integration into Moldovan society, implementation of the Action Plan to strengthen civil protection response and management in emergency situations, including the influx of refugees, taking measures to strengthen poverty reduction, energy efficiency, implementation of energy efficiency policies for public and residential buildings. Also, the Cabinet decided to amend the legal framework on deposit guarantees, to increase the coverage of bank deposits and consolidate the Fund's capacity of guaranteeing deposits, in line with EU requirements for better protection of public deposits, to take measures to improve the legislation on corporate management of public companies, by granting the Public Property Agency the power to approve the code of corporate management of public companies, to adopt the framework for appointing independent board members and evaluation of members of public companies. The financing agreements will take effect after the Moldovan Parliament ratifies them and after all the conditions stipulated in the agreement are met. The financial assistance will be available until the end of May 2024. // 14.06.2023 – InfoMarket
