Moldova will receive $105.7 million in budget support from the World Bank Group for economic development and climate transition
In particular, the allocation of these funds to finance the state budget will be provided for in relevant agreements with the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), members of the World Bank Group, the signing of which has been approved by the government. In particular, Moldova will sign agreements with the IDA and the IBRD on financing for the implementation of the “Moldova Supporting Economic Opportunities and Climate Transition Development Policy Operation” program, which provides for the allocation of $105.7 million to our country. It is planned that Moldova will receive $50 million of the total World Bank loan of $90 million from the IDA and $40 million from the IBRD. The $40 million loan (or the equivalent in euros) will be provided to our country by the IBRD for 30 years, including a 5-year grace period. The interest rate will be floating, the commitment fee will be 0.25%, and the one-time fee will be 0.25%. At the same time, a $50 million loan (or the equivalent in euros) will be provided by the IDA on standard IDA terms. In addition, the IBRD and the IDA will provide Moldova with a $15.7 million grant to co-finance the aforementioned program. The financial resources will be provided after the fulfillment of 11 conditions related to improving the competitiveness of the private sector by facilitating market entry and exit, improving employment opportunities and access to quality education, as well as enhancing energy security and promoting climate-resilient agriculture. After signing, the agreement must be ratified. Earlier, it was reported that the World Bank's Board of Directors had approved the “Moldova Supporting Economic Opportunities and Climate Transition Development Policy Operation.” As noted in the World Bank's statement, this initiative aims to stimulate economic growth prospects and strengthen the country's energy security, while helping to bring it into line with European Union standards. This $90 million operation builds on previous Development Policy Operations, “Moldova Emergency Response, Resilience, and Competitiveness” and “Supporting Growth and Resilience in Moldova.” The World Bank report notes that Moldova has faced multiple crises that have tested household purchasing power and public resources, exposing the vulnerability of the country's growth model and underscoring the urgent need for fundamental economic reforms. It is emphasized that Moldova has a unique opportunity to accelerate reforms that will promote stronger economic growth and faster job creation. Integration with EU markets and institutions paves the way for a more productive, diversified, and private sector-led economy. Inguna Dobraja, World Bank Country Director for Moldova, noted that Moldova has a unique opportunity to take advantage of its EU candidate status. WB support will help with key reforms to build a working market economy, boost competitiveness, empower the workforce with the right skills, and strengthen energy security. The World Bank's support is focused on three main areas: enhancing private sector competitiveness by creating a framework for fair competition, improving bankruptcy legislation to enable the restructuring of troubled but viable companies, and improving the business environment to attract additional investment; increasing youth employment and vocational training by introducing dual education in universities, combining theoretical training with practical experience in partnership with the private sector; strengthening the legal framework for displaced persons in Moldova, providing them with long-term legal status, stable living conditions, and permanent access to resources and support services to ensure long-term employment. This operation is part of a broader financial assistance package that includes support from the IMF, the EU, and the World Bank. The operation will provide a $7.7 million grant from the Moldova Growth, Resilience, and Opportunities for Well-being (M-GROW) program and an $8 million grant from the Global Concessional Finance Facility (GCFF) to support the authorities' efforts to respond to the refugee crisis. To date, the GCFF has provided Moldova with grants totaling $67.22 million. The GCFF contribution provided to Moldova under this operation was made by the Government of the Netherlands. Since Moldova joined the World Bank in 1992, over $2.3 billion has been allocated to more than 70 operations in our country. Current areas of support include the energy sector, regulatory reform and business development, land registration and valuation, education, roads, health and social sectors, agriculture, water supply, and sanitation. // 21.05.2025 — InfoMarket
