The World Bank’s Board of Executive Directors approved a new Development Policy Operation (DPO) worth $90 million for the Republic of Moldova. Titled Economic Opportunities and Climate Transition Policies, the initiative aims to stimulate economic growth, strengthen energy security, and align Moldova more closely with European Union standards, bani.md reports.
World Bank representatives stated that this new DPO builds on previous rounds of budget support, which helped Moldova respond to recent crises and enhance economic resilience. The funding forms part of a coordinated effort with the International Monetary Fund and the European Union to drive structural transformation in Moldova’s economy.
“Moldova has a unique opportunity to capitalize on its EU candidacy. The World Bank’s support will underpin critical reforms to establish a functioning market economy, increase competitiveness, empower the labor force, and strengthen energy security,” said Inguna Dobraja, World Bank Group Country Director for Moldova.
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The operation targets three strategic objectives:
- Boosting private sector competitiveness by improving competition and insolvency laws and attracting investment;
- Increasing youth employability by expanding dual education programs in partnership with private-sector employers;
- Supporting displaced persons by providing long-term legal status, access to services, and labor market integration.
In addition to the DPO, the World Bank will provide two grants: $7.7 million through the M-GROW program and $8 million from the Global Concessional Financing Facility (GCFF). These funds aim to support Moldova’s response to the refugee crisis. The GCFF has already provided $67.2 million in grants and facilitated over half a billion in loans to help Moldova support host communities and implement refugee-friendly policies.
The Kingdom of the Netherlands Government contributed the GCFF grant for this new operation.
The international community is taking a key step to support Moldova by funding efforts to modernize the economy, strengthen resilience, and advance its European integration.