The WB will allocate $159.24 million to Moldova to respond to emergencies, strengthen resilience and increase competitiveness.
In particular, this is envisaged by the financing agreements ratified by the Moldovan parliament with the International Bank for Reconstruction and Development and with the International Development Association in order to implement the Program “Moldova, emergency response, sustainability and competitiveness. Development Policy Process”, signed on July 4, 2022. The purpose of the funding program is to support the strategies set by the government to mitigate the negative effects of the crisis caused by the war in Ukraine, as well as to ensure the sustainability and competitiveness of Moldova. The program will be implemented in the form of budget support in the amount of $159.24 million, including a loan of EUR 142.1 million and a grant of $9.24 million. In particular, Moldova will receive EUR 142.1 million in the form of a loan, of which EUR 101.3 million will be provided by International Development Association and 40.8 million euros - the International Bank for Reconstruction and Development, and $ 9.24 million will be a grant from the IBRD. A loan of 101.3 million euros from the International Development Association will be provided to our country for a period of 30 years, including a 5-year vacation on payments, the interest rate will be fixed at 1.24% per annum. At the same time, a loan of 40.8 million euros from the IBRD will be provided for 19 years, including a 5-year repayment holiday. The interest rate will vary, and the commitment fee will be 0.25% of the loan amount. Program “Moldova, emergency response, resilience and competitiveness. Development Policy Process” includes financing of 8 sub-measures: allowing citizens of Ukraine to enter Moldova on the basis of a national certifying document; education of children of Ukrainian refugees in educational institutions of Moldova; consolidation of basic social protection programs by improving the distribution of social benefits for socially vulnerable families (for example, with children with severe disabilities); increasing the potential for energy production from renewable sources; improving the financial sustainability of farms by strengthening the regulatory framework and prudential requirements; creation of a national fund for regional and local development; approval of a new Railway Code and an action plan for the reorganization of the railway sector; digitization of services related to the life cycle of enterprises (registration, reorganization, liquidation, etc.). Financial assistance will be available until the end of May 2023. // 14.07.2022 — InfoMarket
