International Development Association provides Moldova with USD 10 mln to reduce poverty

The International Development Association (IDA) will grant Moldova a loan valued at about USD 10 mln, intended to support poverty reduction (The Economic Growth and Poverty Reduction Strategy Paper). The bill is to be ratified by the Parliament and the loan will be fully disbursed when the Law on Ratification of Agreement between Moldova and IDA comes into effect. At Wednesday’s sitting, the Government has approved the Law on Ratification of Agreement between Moldova and International Development Association. IDA grants this loan on the basis of the Government’s results obtained when implementing its activity programme and thanks to an adequate framework of macroeconomic policies. The funding for supporting poverty reduction is provided to support the Government in implementing EGPRS Paper with a view to stimulating the reform actions. The credit is designed to improve the Government’s capacity to accelerate economic growth and enhance the efficiency of the social programmes and public administration. The project regarding the first IDA credit intended to support poverty reduction in Moldova was signed in Chisinau on December 22, 2006. The credit was given under IDA standard conditions, repayable in 40 years, including a 10 year grace period, an interest rate of 0.75% and a commission of 0.5% annually.