The Japanese government to provide about $100 million for Moldova's economic recovery.
Moldova is initiating negotiations with the Japan International Cooperation Agency (JICA) to provide concessional financing for the implementation of the "Development Policy for Economic Recovery" project. Last July, the Ministry of Finance of Moldova asked JICA for financial assistance to finance the state budget deficit. The Japanese government expressed its willingness to finance it by concluding an agreement in which 13.5 billion Japanese yen (the equivalent of about $100,000) will be allocated. The agreement is to be signed for 40 years, including a 10-year grace period. The financing will be provided at a TORF (Tokyo Term Risk Free Rate) interest rate for 6 months + an annual margin of 1.3 p.p., and the one-time fee is 0.1% of the loan amount. At the same time, the loan will be available for repayment within 2 years from the date of signing the agreement. The purpose of the financing is to support Moldova's political and institutional reforms by mitigating the effects of the war in Ukraine on refugees and households, building resilience and competitiveness to reduce vulnerability to future shocks, thus contributing to promoting economic stabilization and development efforts in Moldova. The agreement involves co-financing from the World Bank's Moldova Emergency Response, Resilience and Competitiveness Program - DPO 2. // 10.05.2023 – InfoMarket
