OREANDA-NEWS. December 17, 2009. The decision to start negotiations on obtaining this additional funding from the International Development Association (IDA) - the member of the World Bank group for implementation of the second project of the Social Investment Fund was taken by the Government at the meeting on Wednesday. According to the Minister of Finance Veaceslav Negruta, it is expected that these funds will be allocated to Moldova for 20 years, including 10-year grace period, under 0,75% p.a. and commission of up to 0,5% p.a.

The additional funding will support the Moldovan Government's anti-crisis program to create new jobs and raise incomes of rural and urban population through rehabilitation of the local socio-economic infrastructure. Previous loan approved for FISM-II project amounted to about US 20 million. The funds were allocated for 40 years with 10-year deferment under 0.75% p.a. The total project cost was US29.17 million.

It was funded by the Swedish Agency for International Development (US 3.5 million). Moldovan Government’s contribution amounted to US 3.6 million. Subsequently WB has provided the Moldovan Government with a loan of US 5 million for the additional funding of FISM-II project.