Moldova to participate in increasing the capital of the Council of Europe Development Bank
This is stipulated by a draft law on Moldova's participation in the increase of the capital of the Council of Europe Development Bank (CEB), in line with the decision of its Administrative Council. The mentioned decision was adopted on December 2, 2022 in Strasbourg. According to the decision of the CEB Administrative Council, Moldova was offered to subscribe to new participation certificates worth 4 million 258 thousand euros, which will allow it to maintain the current number of votes in the Council of the CEB at the level of 0.1%. The decision sets the share of paid-in capital for this capital increase at 28.24% of the subscribed capital, thus the paid-in capital will amount to 1 million 202 thousand 459 euros. The paid-in capital is to be transferred in 4 equal installments between 2025 and 2027. The necessary funds should be planned every year in the state budget laws. According to the Finance Ministry, Moldova currently has a 0.1% voting right in the CEB, which represents Moldova's contribution to the CEB capital of 5 million 488 thousand euros (subscribed capital), of which 610 thousand euros are paid-in capital. So far, there have been 6 capital increases within the CEB, and the increase approved in 2022 and proposed for participation is the 7th. Moldova has participated in only the 6th capital increase since 2012, which was carried out from the bank's reserve fund. According to the Ministry of Finance, guided by the premise of supporting Ukraine, as well as countries involved in the management of the refugee crisis in the context of the reconstruction of the country after the end of the war through the creation of the Ukraine Solidarity Fund, Moldova positively assessed the new the CEB resolution. The Bank invited Moldova to finalize its actions to participate in the targeted capital increase. The CEB provides loans under favorable conditions to finance social impact projects in the field of education, health, social housing, environmental protection, etc. At the moment, the CEB has granted loans worth about 230 million euros to Moldova for 8 projects (construction of social housing, new prison, new Balti district hospital, modernization of the Republican Clinical Hospital, purchase of ambulances, Covid-19 emergency response project, etc.). According to the Finance Ministry, after Moldova's participation in the increase of the CEB capital, Moldova will have access to favorable financing conditions, where the bank provides long-term financing with a grace period of up to 5 years and a repayment term of up to 20 years, without commissions. Also, Moldova's international visibility will increase, by contributing to strengthening the image and visibility of the state at the international level, in line with the aspirations and status of a candidate country for EU accession. Moldova will strengthen its commitment to international cooperation and support for sustainable development in the region. // 19.12.2024 - InfoMarket.
