Moldova will receive a $100 million concessional loan from Japan to support economic recovery, resilience and competitiveness.
The Parliament approved on Thursday the first reading of a draft law on the ratification of an agreement between the Moldovan and Japanese governments on a development policy loan for economic recovery, signed in Chisinau on July 10, 2023. The preferential loan of up to 13.5 billion Japanese yen (about $100 million, or 90 million euros) will be granted through the Japan International Cooperation Agency (JICA) for 40 years, with a grace period of 10 years, at an interest rate equal to TORF (Tokyo Term Risk Free Rate) + 1.3% per annum. The money will be used to cover the budget deficit and support reforms. In particular, they will be used to restore Moldova's economy, improve the medical system and the business sector. Also, the agreement stipulates that Moldova will observe certain conditions, some of which are aimed at improving the health care system and developing small and medium-sized businesses. The goals of this budgetary assistance are: mitigating the consequences of Russia's war against Ukraine for Moldovan citizens and persons displaced from Ukraine, as well as supporting reforms in Moldova, aimed at improving the country's economic sustainability and competitiveness. //20.07.2023 - InfoMarket.
