03 april

Moldova will receive about $30 million from WB to support structural reforms and stimulate economic growth

It is provided by the financial agreement, signed on 2 April in Chisinau between the Moldovan government, International Development Association and International Bank for reconstruction and development- a part of the World Bank group. IDA will provide Moldova with $21 million for the period of 25 years, with a 5-year deferment on payments at 1.25% p.a. with fee of 0.75% p.a. IBRD will provide a loan in the amount of $9 million for 30 years, with a 5-year grace period, with single commission of 0.25%. The interest rate will be Libor+fixed margin of 1%. During the cabinet meeting on Wednesday a draft law on ratification of these agreements was approved. WB ' funds are intended to support measures to improve the business climate, strengthen stability, develop the financial sector, improve the efficiency of the government’s spending. They will implement structural reforms to stimulate economic growth in the private sector, increase the efficiency of the Agency with the goal of reducing poverty and ensure overall economic growth for all citizens of Moldova. WB ' funds shall support implementation of the National development strategy «Moldova 2020 and are an important component of the Partnership Strategy of the World Bank with Moldova in 2013. This is the first of the two planned loans for these purposes, which is a continuation of recent aid of WB development policies, aimed at increasing competitiveness and approved in November 2012. Since 1992 the World Bank’s assistance to Moldova exceeded $1 billion for implementation of 49 projects in education, social assistance, health, public administration, agriculture and other industries.