OREANDA-NEWS. April 21, 2014. The financial agreements between the Government of Moldova and The World Bank’s International Bank for Reconstruction and Development and International Development Association were signed on April 3 by Premier of Moldova Iurie Leanca and WB Regional Director for Ukraine, Belarus and Moldova Mr. Qimiao Fan.

In line with them, the International Development Agency provides Moldova with USD21 million for 25 years, with the 5-year-long grace period at an interest rate of 1.25% a year and the commission of 0.75% a year.

The International Bank for Reconstruction and Development issues the loan of USD 9 million for 30 years, with a 5-year-long grace period and the commission of 0.25%, and the Libor interest rate plus the fixed interest margin of 1%. The financial agreements were approved on March 28 2014 by the Board of Directors of the WB Group. They stipulate the support to Moldova in implementing the program of structural reforms and in boosting the economic growth through improvement of Moldova’s business environment, strengthening of stability and development of Moldova’s financial sector and enhancement of public expenditure efficiency.

This was the first development policy operation for Moldova and part of 2014-2017 WB Partnership Strategy for our country. The next operation of the same amount has been scheduled for the second half of this year. The funds of the World Bank are aimed at implementing structural reforms to encourage an economic growth in the private sector and to raise effectiveness of public investment for reducing poverty and raising living standards for all citizens of the country.

In particular, the loan of the World Bank will back many structural reforms through consolidation of regulatory and legal frameworks to make the business environment in Moldova more predictable; encouragement of competitiveness and contraction in the regulation costs; consolidation of the financial sector, promotion of the transparent structure of shareholders and facilitation of the access to lending. Moldova will also enhance public investment management, make distribution of public subventions more effective and fair and increase a number of beneficiaries of targeted social aid.

The total commitment of the new WB partnership strategy for Moldova amounts to USD 450 million of which USD 250 million are to be provided by the International Development Agency and USD 200 million are to be extended by the International Bank for Reconstruction and Development. Since Moldova’s joining the World Bank in 1992, the International Development Association and the International Bank for Reconstruction and Development have funded 49 operations for Moldova, their total commitment exceeding USD 1 billion.