The World Bank will provide Moldova with a new grant of $88.4 million to support the state budget, increase Moldova's sustainability and competitiveness.
This is stipulated by the respective grant agreement, ratified by the Moldovan Parliament on Thursday. The grant agreement "Multi-Donor Trust Fund for additional co-financing of the Program "Moldova, Emergency Response, Resilience and Competitiveness Development Policy Operation - 2"" between Moldova, the International Bank for Reconstruction and Development and the International Development Association, members of the World Bank Group, was signed on August 9. The grant will be allocated in a single tranche. The financial assistance will be provided by the USA and Switzerland till September 30, based on 8 actions carried out by Moldova. The money will be used to finance the needs of the state budget, in order to mitigate the negative consequences of the war in Ukraine, as well as to ensure Moldova's sustainability and competitiveness. It is worth mentioning that in late May this year, the World Bank approved the financing of the Program "Moldova, Emergency Response, Resilience and Competitiveness Development Policy Operation 2", which envisages the allocation to Moldova in the form of budgetary support of $211 million, including a loan of 92.1 million euros (equivalent to $100 million) from the International Bank for Reconstruction and Development and grants worth $111 million. This program envisages financial assistance not only from the WB, but also from other donors. All funds will be used to finance 8 sub-measures: integration of Ukrainian refugees; strengthening civil protection response and management in emergency situations, including in connection with the influx of refugees; establishing a guaranteed minimum income separately for children; introducing energy efficiency policies for public and residential buildings; amending the legal framework for deposit guarantees to increase the coverage of bank deposits; strengthening the legal framework for corporate governance of state-owned enterprises by authorizing the Public Property Agency to approve a corporate governance code for state-owned enterprises; further support for the reorganization of the railway sector and harmonization of national legislation with EU standards; facilitating access to digitalization of services for enterprises. // 17.08.2023 - InfoMarket.
