
The WB will provide a loan of $40 million for the implementation of the Moldova Disaster Risk Management and Resilience Project.
This is provided for by a draft loan agreement between Moldova and the International Bank for Reconstruction and Development (part of the World Bank group), the start of negotiations on which the government plans to soon approve the official group of negotiators headed by State Secretary of the Ministry of Finance Ion Gumene. As noted by the Ministry of Finance, the purpose of the loan agreement and the project as a whole is to increase Moldova’s preparedness for and response to natural disasters and climate-related shocks, and in the event of such a crisis or emergency, to respond quickly and effectively to them. The loan repayment period and grace period will be selected after an analysis carried out by the Ministry of Finance. The maximum repayment period is up to 35 years. The loan must be repaid every six months, and the interest rate is variable (Euribor 6 months plus a margin set by the bank every six months). The commitment fee is 0.25%, calculated on the amount owed, and the one-time fee is 0.25%, calculated on the loan amount. Loan servicing costs must be paid from the state budget. The draft proposed agreement with the World Bank consists of 5 components. At the same time, the largest amount of funds is provided for investments and institutional strengthening to ensure preparedness and response to emergency situations - $29 million. It is planned to allocate $6 million to improve the hydrometeorological service. The component “Policy and regulatory support for reducing the risks of critical infrastructure and financial sustainability” provides funding in the amount of $3 million. $2 million has been reserved for project management. // 26.06.2024 — InfoMarket.