Moldova borrows over US$45m from IDA

The Government empowered Minister of Finance Veaceslav Negruta to sign an agreement to finance the development policies for economic recovery with the International Development Association (IDA), Info-Prim Neo reports. Under the agreement, the IDA will provide a loan of US$25 million to support the short-term corrective policies included in the economic recovery and stabilization program, mainly social protection measures and measures aimed at protecting activities that can stimulate exports and private investments in the post-crisis period. The loan is repayable in 20 years, at a yearly interest rate of 0.75%. The loan will be repaid in semiannual installments. There will be also signed an agreement on the implementation of the Disaster and Climate Risk Management Project between Moldova and the IDA. A loan of US$10 million will be released for financing this project. It is repayable in 20 years, with a grace period of 10 years, at an interest rate of 0.75%. The World Bank expressed readiness to increase the amount allocated for implementing this project following the recent floods. Under the third agreement that will be signed, the IDA will offer an advance of US$2 million for preparing the e-Government project.