EBRD President Odile Renaud-Basso will announce the bank's further support for the Moldovan economy during her visit to our country on July 24
According to the bank, the EBRD President will make her second trip to Moldova in two years, and the current visit follows a record year of EBRD investments in Moldova in 2022, which amounted to 524.8 million euros, which is 4% of the country's GDP, and was 5 times the EBRD's average annual investment in Moldova, and also supported the country's efforts to protect the economy from the shock of Russia's war with neighboring Ukraine. EBRD President Odile Renaud-Basso, accompanied by EBRD Managing Director for Eastern Europe and the Caucasus Matteo Patrone, will meet with the Moldovan authorities, business leaders, representatives of international financial organizations and civil society. During the three-day trip, she is expected to sign a new loan with one of the EBRD's partner banks, as well as introduce to the Moldovan authorities the new head of the EBRD's office in Moldova, Catarina Bjorlin Hansen, who will replace Angela Sax. The EBRD notes that, like other countries in the region, Moldova has faced huge short-term uncertainty due to Russia's ongoing war against Ukraine that followed the global Covid pandemic. Thus, the investment and policy activities of the EBRD over the past 18 months have been focused on helping our country build its resilience to the economic shocks caused by the war. Key investments included a €300 million loan for strategic gas purchases to help Moldova diversify its supply sources and buy more gas from European hubs, and a €100 million loan for road upgrades near the border with Ukraine. According to the EBRD, the renewable gas purchase mechanism allowed Moldova last winter to meet about 20% of the demand for "blue fuel" through supplies from the European Union - compared to less than 5% in 2021. The EBRD's latest five-year country strategy for Moldova for 2023-2028 is aimed at investing in Moldova's energy security, supporting the private sector and decarbonization, as well as modernizing the country's infrastructure, which is considered a decisive factor in the current disruption of the supply chain and trade. In 2023, the bank invested $30 million in an agreement with electricity distributor Premier Energy to finance investments in the electricity distribution network; signed a €23 million agreement to fund the rehabilitation of key rail infrastructure under the Corridors of Solidarity initiative; and €25 million for the first nationwide project to improve solid waste management in Moldova. As part of its flagship EBRD Green Cities programme, the bank has also committed €8 million to reduce the risk of flooding on the Bic River in Chisinau and turn it into an attractive asset for residents. The latest EBRD report, Regional Economic Prospects, released in May 2023, states that in 2023 Moldova will face a second consecutive year of production decline, caused by the impact of the war in neighboring Ukraine. But an improvement in the global outlook in 2024 will have a positive impact on the economic recovery, forecasting Moldova's GDP growth next year by 3.5%. The EBRD is the leading institutional investor in Moldova and has invested more than €2 billion in the country to date through 166 projects. It has provided consulting services to more than 1,000 Moldovan firms to help them improve efficiency and grow. The EBRD is working closely with the Moldovan authorities to create a regulatory framework that will encourage more investment in renewable energy. Its focus in Moldova is on creating an environment that supports the activities of the private sector, promoting European standards in all sectors and regional integration to bring domestic producers closer to their markets, as well as developing efficient and sustainable public services that have a direct impact on people's lives. The EBRD is a multilateral bank that promotes private sector development and entrepreneurship in 36 countries on three continents. The bank is owned by 71 countries, as well as the EU and the EIB.//21.07.2023 – InfoMarket.
