The World Bank’s Board of Executive Directors has approved an Emergency Response, Resilience and Competitiveness Development Policy Operation (DPO) in the amount of $159.24 million for the Republic of Moldova. The DPO includes IBRD financing with a loan in the amount of $43 million and a concessional contribution on a non-reimbursable basis under the Global Concessional Financing Facility (GCFF) in the amount of $9.24 million, as well as an IDA credit in the amount of $107 million. Agence Française de Développement is expected to provide parallel financing in the amount of €60 million.
“This budget support will help the Government of Moldova mitigate the impacts of the war in Ukraine on refugees and households, as well as build resilience and enhance competitiveness to reduce vulnerabilities to future shocks,” runs a press release of the World Bank.
“The series of shocks that has hit Moldova recently has significantly impacted Moldovan citizens, but especially poor families and small businesses,” said Inguna Dobraja, World Bank Country Manager for Moldova. “While responding to the unprecedented and immediate challenges posed by the war in Ukraine, the Government is committed to addressing the unfinished development reform agenda to support the country’s economic, social, and structural transformation. This budget support will help the government respond to the country’s immediate needs, while maintaining momentum in the long-term agenda of building resilience and enhancing competitiveness in Moldova.”
This operation is part of a package of coordinated financial assistance from international partners, including the IMF, the EU, and the EBRD, prepared in response to the ongoing socio-economic emergency in Moldova. Since Moldova joined the World Bank in 1992, over $1.3 billion has been allocated to more than 60 operations in the country.
