Supporting Sustainable Economic Growth in Moldova
March 28, 2014
WASHINGTON, March 28, 2014 – Helping Moldova enhance its structural reform agenda and spur growth, by supporting improvements in the business climate, promoting financial sector stability and development, and improving the equity and efficiency of public expenditures are the core objectives of the First Development Policy Operation (DPO), in the amount of US$30 million, approved today by the World Bank Group Board of Executive Directors.
The US$30 million supports the Government of Moldova’s National Development Strategy “Moldova 2020” and is a key component of the Moldova Country Partnership Strategy for 2014-2017. It is first in a programmatic series of two operations and builds on the most recent competitiveness-oriented Development Policy Operation approved in November 2012.
”We are pleased to support the Government of Moldova’s efforts to achieve sustainable and inclusive economic growth by shifting to a growth model based on investments, increased competitiveness, innovation and exports”, said Abdoulaye Seck, World Bank Country Manager for Moldova. "Our support is fully aligned with the country’s national development priorities and aims to address key reforms that can contribute to spurring private-sector led growth, whilst making public investments work better and more equitably to reduce poverty and boost shared prosperity for all Moldovan citizens”.
The new operation supports a number of important structural reforms through: i) strengthening the regulatory framework to improve predictability of the business environment, facilitate competition and reduce regulatory compliance costs; ii) strengthening financial sector stability, promoting transparency of shareholding, and easing conditions for access to finance; iii) improving the public investment management framework, making investment subsidies in agriculture more efficient and equitable, and improving coverage of well-targeted social assistance programs.
“While the first operation marks an important benchmark, we are looking forward to continue our cooperation in advancing structural reforms as part of the second DPO”, said Ruslan Piontkivsky, Task Team Leader of the DPO series. “It is crucial not to lose momentum and to successfully complete all of the initiated reforms.”
Since Moldova joined the World Bank in 1992, over US$1 billion has been allocated to 49 operations in the country. Currently, the World Bank portfolio includes 7 active projects with total commitments of US$162.2 million. Areas of support include regulatory reform and business development, education, social assistance, e-governance, healthcare, agriculture, and other. The International Finance Corporation has provided total investments in the amount of US$233 million in 24 projects in various sectors, and the Multilateral Investment Guarantee Agency has provided guarantees totaling US$95 million. Both institutions are members of the World Bank Group.