The Executive Directors of the World Bank have approved a decision to provide the Republic of Moldova with a funding package worth $134.3 million. The funds will be disbursed as part of the Second Programmatic Development Policy Operation for Emergency Response, Resilience, and Competitiveness (DPO2). This budgetary support will assist the Government of Chișinău in mitigating the socio-economic impact caused by the Russian invasion of Ukraine, particularly on refugees and households. The support aims to strengthen resilience and enhance competitiveness to reduce vulnerabilities to future shocks, as reported by IPN.
DPO2 focuses on providing legal status and support for the integration of Ukrainian refugees and improving social protection programs for affected households due to the invasion and energy crisis. Additionally, the program aims to enhance energy efficiency, strengthen the legal framework for deposit insurance and corporate governance of state-owned enterprises, support the restructuring of the railway sector, and facilitate the digitalization of public services for enterprises.
“This emergency budget support, which comes with contributions from our development partners, will help the Government of the Republic of Moldova mitigate the ongoing impact of the Russian invasion of Ukraine on refugees and households severely affected by recent crises,” stated Inguna Dobraja, World Bank Country Manager for Moldova, in a press release.
FOR THE MOST IMPORTANT NEWS, SUBSCRIBE TO OUR TELEGRAM CHANNEL!
The program is part of a coordinated financial assistance package for the Republic of Moldova from international partners in response to the country’s current socio-economic emergency. The package includes contributions from the International Monetary Fund, the European Union, and bilateral partners.
DPO2 includes a $100 million IBRD loan and benefits from a co-financing grant of $9.3 million from the Multi-Donor Trust Fund for the Moldova Development Policy Program (MDTF), as well as a concessional contribution of $25 million from the Global Concessional Financing Facility (GCFF).
Since joining the World Bank in 1992, the Republic of Moldova has received over $1.3 billion allocated to more than 60 operations. Currently, the World Bank’s portfolio includes 11 active projects with a total commitment of $608 million.