The World Bank will provide Moldova with a $400 million loan to implement the Sustainable Economic Growth Operations Program, $250 million of which will support the state budget in 2026
This is stipulated by the draft loan agreement between Moldova and the International Bank for Reconstruction and Development (part of the World Bank Group) for the implementation of this program. The government approved the commencement of negotiations on this loan agreement at a meeting on Wednesday, establishing a negotiating team led by Ion Gumene, Secretary of State of the Ministry of Finance. According to the Ministry of Finance, Moldova continues to face significant internal and external pressures caused by the consequences of recent crises, security risks, and energy vulnerability, which affect budget sustainability. In this context, it is necessary to ensure stable sources of financing to support priority reforms and limit pressure on the domestic market. Thus, on November 24, 2025, the Ministry of Finance requested the World Bank Group to initiate a Development Policy Operation (DPO) structured in two sequential tranches for 2026 and 2027, with a total cost of $300 million. The operation aims to support reforms in key areas such as governance, economic competitiveness, social protection, environmental protection, and energy security. In the context of existing constraints in the domestic market and high financing costs, on April 1, 2026, the Ministry of Finance submitted an additional request to increase the funding associated with the first operation by $100 million, partially replacing domestic financing with semi-concessional external resources. This brings the funding envisaged for 2026 to $250 million. Following the discussions, the World Bank presented the Ministry of Finance with a draft Policy Matrix for coordination with the responsible institutions, as well as a draft loan agreement between Moldova and the International Bank for Reconstruction and Development for the implementation of the Program of Operations to Ensure Sustainable Economic Growth. The Policy Matrix, related to this program, was reviewed at a meeting of the Interagency Committee on Strategic Planning. According to the Ministry of Finance, the Program of Operations for the Implementation of Moldova's Sustainable Growth Policy Programs provides for total financing of $400 million or the equivalent in euros, of which $250 million represents a loan for 2026, subject to approval, and $150 million is a loan for 2027, which will be provided under a new loan agreement to be agreed upon and signed in 2027. Both agreements are intended to finance the needs of the state budget. The current draft agreement provides for the allocation of a loan of $250 million or the equivalent in euros through the International Bank for Reconstruction and Development. The financial terms of the loan offered by the World Bank will be established through negotiations. The institution's standard terms are: a maximum average repayment term of 20 years, a variable interest rate depending on the selected currency (for EUR – 6-month EURIBOR plus a variable margin set by the bank quarterly – from 01.01.2026, this amounts to a maximum of 1.08 percentage points, and for USD – 6-month SOFR plus a similar variable margin – from 01.01.2026, this amounts to a maximum of 1.42 percentage points), a one-time fee of 0.25% of the loan amount, and a loan origination fee of 0.25% applied to the unpaid balance. The loan will be disbursed in a lump sum. According to the Policy Matrix associated with the program, the government will implement reforms aimed at modernizing the public procurement system and the business environment, increasing financial transparency, strengthening the labor market and education, aligning the energy and transport sectors with EU standards, and promoting competition, digitalization, and the green transition, all to support sustainable and inclusive economic growth. The draft Policy Matrix contains reform measures aimed at supporting sustainable and inclusive economic growth and a green climate transition in Moldova. The program consists of 14 conditions, structured into two series for 2026 and 2027, each including seven reform measures. The conditions are aimed at modernizing the public procurement system and the business environment, increasing financial transparency, reforming the education and labor market, and aligning the energy sector and transport infrastructure with EU standards. Furthermore, the reforms aim to enhance competition, restructure state-owned enterprises, digitalize financial services, support women's participation in the labor market, and promote a green transition by introducing a carbon tax, creating energy efficiency funds, and developing multimodal transport, thereby promoting sustainable and inclusive economic growth. Currently, all conditions for 2026 have been met, and all regulatory/legislative acts have been adopted. In this context, the loan agreement will be fully disbursed once it enters into force. The draft loan agreement will enter into force upon ratification by the Moldovan Parliament and will become effective upon fulfillment of all conditions specified in the draft loan agreement, but no later than 90 days from the date of its signing.// 29.04.2026 — InfoMarket
