Moldova will receive from the World Bank a grant of $25 million and a loan of 92.1 million euros in budget support.
This stipulated by a financing agreement between Moldova and the International Bank for Reconstruction and Development (part of the World Bank Group) to implement the program "Moldova, Emergency Response, Resilience and Competitiveness. Development Policy Operation 2", the draft law on ratification of which the Moldovan Parliament passed in the first reading on Thursday. These funds are intended for stabilization and growth of the Moldovan economy, as well as for the implementation by the current government of a number of social and economic programs. As InfoMarket agency earlier reported, in total Moldova will get $211 million from the World Bank within the framework of a new program of budgetary support, including a loan of 92.1 million euros (equivalent of $100 million) and a grant of $111 million. The term of the loan is 21 years, including a grace period of 3 years, the interest rate is variable, the commitment fee is 0.25% and is calculated on the unpaid amount, the one-time fee will be 0.25% of the loan amount. The loan servicing costs are paid from the state budget. To get the money, Moldova has to carry out 8 sub-actions related to implementation of the Action Plan for ensuring better legal status for Ukrainian refugees and their better integration into the Moldovan society, implementation of the Action Plan for strengthening of civil protection responses and management in emergency situations, including the influx of refugees, taking measures to fight against poverty, energy efficiency, implementation of energy efficiency policies for public and residential buildings. The matter also concerns amending the legal framework on deposit guarantees to increase the coverage of bank deposits and strengthen the fund's deposit guarantee capacity in line with EU requirements for better protection of public deposits, taking measures to improve the legislation for corporate governance of state-owned companies by empowering the Public Property Agency to approve the corporate governance code for state-owned companies, adopting a framework for the appointment of independent board members and evaluation of board members, adopting additional rules to further support the reorganization of the railway sector and the harmonization of national legislation with EU standards, facilitating access to digitalization of services for business. The aforementioned financing agreement will enter into force after ratification by the Moldovan Parliament and fulfillment of all conditions stipulated in the agreement. The financial assistance will be allocated until May 24, 2024. // 22.06.2023 - InfoMarket.
