The legislative body ratified the €24.9 million financing agreement between the Republic of Moldova and the International Development Association for the Economic Governance Development Policy Operation for Moldova that was signed in Chisinau on July 11, 2018, IPN reports.
During the debates on the agreement, Minister of Finance Octavian Armasu said it involves a loan provided in the form of budget support that is to cover the general current budget deficit. The money will go to cover the budget costs, including those associated with public investments and road rehabilitation.
The loan of €24.9 million is repayable in 30 years, with a grace period of five years, at an interest rate of 1.42% a year.
The approval of this financing is an acknowledgment of the recent reforms implemented in Moldova to enhance the pension system, increase functionality of the National Integrity Authority, strengthen banking sector governance, and improve the business environment.
The World Bank Group’s Board of Directors approved the Economic Governance Development Policy Operation for Moldova on July 5, 2018. The current operation is a key component of the World Bank’s Moldova Country Partnership Framework for 2018-2021 and supports the Government of Moldova’s National Development Strategy “Moldova 2020”.
