The World Bank Group’s Board of Directors approved a US$ 30 million Economic Governance Development Policy Operation (EGDPO) for Moldova. EGDPO provides resources to help the Republic of Moldova reduce fiscal risks and level the playing field for private sector development, IPN reports, quoting a press release of the World Bank.
“The approval of this financing is an acknowledgement of the recent reforms implemented in Moldova to enhance the pension system, increase functionality of the National Integrity Authority, strengthen banking sector governance, and improve the business environment, to name a few,” said Anna Akhalkatsi, World Bank Country Manager for Moldova.
“We are committed to supporting the Moldovan authorities in further reforms that are needed to help businesses grow and create jobs for ordinary citizens.”
“Economic growth is expected to moderate in the medium-term and remain highly reliant on consumption. Boosting growth and maintaining macro-economic stability require addressing economic governance challenges that undermine both public and private sector efficiency,” said Elisa Gamberoni, World Bank Senior Economist for Moldova. “The focus of this operation is to address key economic governance bottlenecks, and reduce medium-term fiscal risks and foster private sector development.”
Since Moldova joined the World Bank Group in 1992, over US$ 1 billion has been allocated to approximately 60 projects in the country. Currently, the World Bank portfolio includes 10 active projects with a total commitment of US$ 357.9 million. Areas of support include regulatory reform and business development, education, e-governance, healthcare, agriculture, local roads, environment, and more.
The International Finance Corporation’s committed portfolio in Moldova is US$ 53.8 million (US$ 50.9 million outstanding), and consists of 95% loans and 5% equity. The Multilateral Investment Guarantee Agency has provided guarantees totaling US$ 95 million. Both institutions are members of the World Bank Group.
