WASHINGTON, June 24, 2010 - The World Bank Board of Executive Directors today approved a financing credit to the Republic of Moldova in the amount of US$ 25 million for an Economic Recovery Development Policy Operation. The main objective of this credit is to adequately fund priority expenditures for economic recovery and social protection during fiscal correction, and lay the foundations for a sustained post-crisis recovery in Moldova through exports and private investment.
The Development Policy Operation aims to support the Government of Moldova’s Economic Stabilization and Recovery Program through stimulating economic recovery and reducing the impact of the severe crisis-induced recession on poor people.
“The World Bank has moved fast to address Moldova’s needs for support during the current economic crisis,” said Melanie Marlett, World Bank Country Manager for Moldova. “We hope that the US$ 25 million approved today will accelerate Moldova’s recovery and support economic growth in the short to medium term.”
The US$ 25 million will complement the IMF-supported program for fiscal correction with measures to improve the composition of the budget and stimulate economic recovery.
The objectives of the Economic Recovery Development Policy Operation are the following:
- Support budgetary planning in order to increase funding for road maintenance;
- Improve targeting of agricultural subsidies with a focus on investments and individual farmers;
- Increase the reach and access to the new social assistance system based on income;
- Increase profitability of traditional exports through building a competitive and favorable environment for wine producers;
- Ensure a more commercially viable energy sector whilst compensating poor people;
- Facilitate implementation of cross-border fiber optic cable connection with the aim to reduce cost and increase the quality of Internet services for the public;
- Improve the business environment through a reduction in the amount of time necessary to register a business.