Government names sectors to be financed by donors

The Government announces that it has selected the sectors which will enjoy funding from the USD 1.2 billion promised to Moldova by foreign donors in December 2006, in Brussels. The Government has also pointed out that the launch of the projects is preceded by standard preparation procedures, such as deciding the terms and project-related documentation, negotiations, and final approval of the donors to finance the projects. Nearly USD 680 mln were earmarked to cover the costs of unfolding projects in areas of major importance for Moldova, such as: education, health, private sector development, infrastructure and agriculture, etc. USD 520 mln is supposed to be allotted for implementing new projects that will be identified in cooperation with all the partners. Experts recently warned that Moldova risks failing this year, due to the incapacity of functionaries from key-ministries, to fund projects from the money promised to Moldova. They argued that the Government did not take any money so far, because it did not present and was not able to present projects that would determine the European funds to finance projects in Moldova. Half of the money promised by the European Union, international financial bodies and other foreign donors will be provided as grants and the other half is to be offered as long-term loans, with interest rates of up to 1.5%. The funds will be intended for an efficient implementation of the EU-Moldova European Neighbourhood Policy Action Plan and of the Economic Growth and Poverty Reduction Strategy Paper (EGPRSP) and will primarily be directed towards the implementation of reforms in the judicial system, public administration, education, health, infrastructure, creation of new jobs in the social sector, development of the rural and agricultural sector. The financial resources will be directed to all kinds of projects: governmental, social and private as well.