Parliament passed in the first reading a bill providing for the ratification of the financing agreement between Moldova and the International Development Association (IDA) for implementing the Competitiveness Enhancement Project II. The total cost of the project is US$45 million – a US$30 million loan provided by the International Bank for Reconstruction and Development (IBRD) and a IDA loan of US$15 million, IPN reports.

Deputy Minister of Economy Octavian Calmac said a part of the financing will be provided based on the results so as to support the reforms and objectives set for the project’s Regulatory Reform and Business Development components.

The project’s key objective is to enhance the competitiveness of the exporting Moldovan companies and to reduce the constraints and burden of the regulatory framework.

The direct beneficiaries of the project are the private companies that now encounter difficulties owing to the unfavorable business environment, are constrained owing to the lack of access to financing or are unable to benefit from business development services.

The IDA loan is repayable in 25 years, with a grace period of 5 years, at an interest rate of 1.25% a year. The IBRD loan is repayable in 30 years, with a grace period of 5 years, at an interest rate of 0.25% a year.

The project implementation period is September 15, 2014 – January 31, 2020.