Japan to Provide Moldova with $100 Million Preferential Credit for Economic Recovery Project

The Government of Japan has announced its decision to offer a preferential credit of approximately $100 million to the Republic of Moldova for the implementation of the “Development Policies for Economic Recovery” project.

The funding will be provided under the Economic Development and Recovery Program, which aims to support the government’s reforms and policies by mitigating the impact of the war in Ukraine on refugees and households, as well as ensuring the resilience and increased competitiveness of the country.

In this regard, the government, at the initiative of the Ministry of Finance, has approved the draft resolutions on initiating negotiations on the loan agreement between the Government of the Republic of Moldova and the Japan International Cooperation Agency (JICA), as well as the agreement with the Government of Japan regarding the loan provision. The loan will have a term of 40 years, including a grace period of 10 years.

The funds will be received through the Japan International Cooperation Agency (JICA) and disbursed throughout the current year, following the entry into force of the agreement.

The decision by the Japanese government to provide this concessional loan to the Republic of Moldova was announced during the G7 leaders’ conference on February 24.

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The financial support from Japan comes as a significant boost to Moldova’s efforts in economic recovery and development. The funds will play a crucial role in implementing key reforms and policies aimed at addressing the challenges faced by the country due to the conflict in Ukraine. By mitigating the impact on refugees and households and fostering resilience, Moldova aims to strengthen its economic foundations and enhance its competitiveness in the global market.

The partnership between the Republic of Moldova and Japan highlights the commitment of both countries to promoting cooperation and fostering economic development. It also reflects the international recognition of Moldova’s efforts to overcome challenges and build a prosperous future.

The preferential credit provided by Japan demonstrates the country’s confidence in Moldova’s potential for growth and development. This financial support, coupled with strategic reforms and policies, will contribute to the country’s path toward sustainable economic recovery and prosperity.

As the loan agreement negotiations progress, Moldova looks forward to deepening its ties with Japan and leveraging this partnership for the benefit of its citizens. The successful implementation of the “Development Policies for Economic Recovery” project will undoubtedly contribute to the long-term growth and stability of the Republic of Moldova.