The Cabinet ratified the financing agreement with the International Bank for Reconstruction and Development (IBRD) and the International Development Association for implementing the Moldova Emergency Response, Residence, and Competitiveness Development Policy Operation 2 program that was signed on June 9, 2023. Both the €92.1 million loan and the US$25 million grant will be offered in the form of budget support, IPN reports.

“The goal of the given program is to support the implementation of the reforms agreed by the Government, to alleviate the negative effects of the war in Ukraine and to ensure the economy’s resilience and competitiveness,” Minister of Finance Veronica Sirețeanu stated in the Cabinet meeting.

The loan is repayable in 21 years and has a grace period of three years at a variable interest rate. The loan and the grant are to be disbursed in one tranche. The financial assistance will be available until May 21, 2024.