Japan offered the Republic of Moldova a concessional loan of up to 13.5 billion Japanese yen (about $100 million). The purpose of the financial assistance is to mitigate the consequences of a war in a neighboring state for citizens and support reforms aimed at increasing the economic stability and competitiveness of the country.
In this sense, the Japanese Ambassador to Chisinau, Yamada Yoichiro, and the Minister of Finance, Veronica Siretsanu, today exchanged notes on the implementation of the Development Policy Loan for Economic Recovery. Ando Naoki, Senior Vice President of the Japan International Cooperation Agency (JICA), and Veronica Siretseanu signed a loan agreement for the related program.
The loan is provided for 40 years with a grace period of 10 years at an interest rate equal to TORF (Tokyo Term Risk-Free Rate), +1.3% per annum.
Finance Minister Veronica Siretsanu said that this support be used to finance the needs of the state budget for 2023 and will be aimed at supporting the political and institutional reforms of the Republic of Moldova, increasing resilience and improving competitiveness to reduce vulnerability to future shocks.
“Japan wants to continue cooperation with the government and citizens of Moldova, promote its integration into Europe and overcome the challenges caused by Russia’s invasion of Ukraine. We are with Moldova in its efforts to build a democratic, prosperous, and secure future,” said Japanese Ambassador Yamada Yoichiro.
JICA Senior Vice President Ando Naoki said that through this loan, Japan supports the Moldovan government’s efforts to respond to the crisis and institutional reform.
“JICA also continues our cooperation in the form of technical assistance, sending our experts in healthcare and industrial development. We hope that such cooperation will help overcome the unprecedentedly difficult situation in which your country finds itself,” said Ando Naoki.
In recent years, Japan has financed several projects to improve the quality of life and promote sustainable economic development in Moldova, including the Agricultural Machinery and Equipment Modernization Project worth 2.1 billion Japanese yen; Economic and Social Development Program, which provided 100 million Japanese yen worth of medical equipment; 1.6 billion yen fire fighting equipment improvement project; 1 billion Japanese yen medical system strengthening program; About 215 million Japanese Yen for 2019-2022 “Kusanone” Human Security Grants Program.