Moldova’s Ministry of Finance and the Council of Europe Development Bank (CEB) have signed a €70 million loan agreement to support the Government in its efforts to contain the COVID-19 pandemic and mitigate its negative impact on health and employment, IPN reports.
In a press release, the Ministry of Finance says the loan has two components: health, and support for micro, small and medium-sized enterprises. The loan is provided under the Public sector Financing Facility of the CEB, which offers a flexible and timely use of CEB funds.
A sum of €40 million will be provided for healthcare, for the purchase of medical equipment and consumables, rehabilitation and transformation of medical units, mobilization of additional expertise to ensure emergency response to COVID-19.
Another €30 million will go to support micro, small and medium-sized enterprises (MSMEs). The funds will be used for the working capital and investment needs of the MSMEs affected by the crisis, helping them to keep viable jobs. This money will be on-lent to end-users through the participating financial institutions.
The Ministry of Finance noted the agreement is an efficient and prompt response to the country’s needs in the fight against COVID-19. The alleviation of the pandemic’s effects on the health of Moldova’s population and on the national economy remains a priority of the Government.
The Governor of the CEB, Rolf Wenzel, said COVID-19 continues to have a great impact on the economy and society and it is vital for the member states of the Council of Europe Development Bank to increase their response capacities. “We are pleased to support the Republic of Moldova in its efforts to strengthen the healthcare system and to offer the necessary assistance to small enterprises affected by the crisis,” said the Governor.
