The World Bank will allocate Moldova a loan of 37.3 million euros and a grant of $5 million in budget support
In particular, this is provided for by the relevant loan agreement between Moldova and the International Bank for Reconstruction and Development (a member of the World Bank Group) for the implementation of the “Moldova - Supporting to Growth and Resilience Development Policies Operation” project, which was ratified by the Moldovan Parliament. The document itself was signed on July 11, 2024. It is planned that the new “Growth and Resilience Development Policy Operation (DPO) project will support the Moldovan government's efforts to assist refugees and households in the context of the consequences of the war in Ukraine, while maintaining the momentum of a long-term program of economic integration with the European Union and building resilience to climate change. The money will be used to increase flexibility in hiring young workers for light work and refugees for temporary or permanent jobs; to strengthen the independence of the Competition Council and the relevant legislation in this field; to increase the minimum aid limits and bring the legislation on transparency and integrity of the energy market in line with EU requirements; to regulate internally and develop the investment policy of the Deposit Guarantee Fund in the banking system; to increase the energy efficiency of the energy sector; and to increase resilience to climate change and sustainability of forest management, etc. The project focuses on 11 measures in total. The loan from the International Bank for Reconstruction and Development of 37.3 million euros will be provided in budget support for 29 years, including a grace period of 9 years. The interest rate on the loan will be variable. The commitment fee will be 0.25% of the outstanding amount and a one-time fee of 0.25% of the loan amount. The loan will be accompanied by a $5 million grant and will be repaid in one tranche. // 31.07.2024 – InfoMarket
