Moldova will receive $55.5 million in budgetary support from the World Bank Group and other donors to implement reforms.
This is stipulated in the draft loan agreement between Moldova and the International Bank for Reconstruction and Development (IBRD, a member of the World Bank Group) for the implementation of the program Moldova Emergency Response, Resilience, and Competitiveness Development Policy Operation (DPO) the launch of negotiations on which the government approved at a meeting on Wednesday while endorsing the composition of the negotiating team. Finance Ministry Secretary General Dina Rosca said that, in order to implement reforms and development policies within the Moldova Emergency Response, Resilience, and Competitiveness Development Policy Operation (DPO), the Finance Ministry requested the World Bank's budgetary support for the implementation of this program on 29 December 2023. The actions included in this program contain a package of measures aimed at consolidating refugee resilience, adjusting the legal framework for social assistance, improving governance and competition in the energy sector, strengthening the financial and banking system, sustainable forest management, and compliance with climate commitments. To implement this program, a budgetary support of $55.5 million is envisaged, of which $40 million will be allocated to Moldova by IBRD in a loan (in euro equivalent) for 29 years with a 9-year repayment vacation, floating interest rate, 0.25% commitment fee calculated on the outstanding amount, with a one-time fee of 0.25% of the loan amount. The loan will be disbursed in one installment. Moldova will receive another $15.5 million in grants, of which $10.5 million will be provided under the Moldova Growth, Resilience and Opportunities for Well-Being (M-GROW) Program Multi-Donor Trust Fund (MDTF). The sides previously agreed on a matrix of policies for receiving the budgetary assistance, all 10 conditions have been implemented and, after the agreement is approved, Moldova will be able to receive the money. The purpose of the program is to support the implementation of the government's strategy for sustainability and economic growth in Moldova. The program is based on 3 pillars: 1) increasing the resilience of refugees and households; 2) promoting sustainable growth through increased competition and private sector-led growth; 3) supporting climate change resilience. // 15.05.2024 - InfoMarket.
