World Bank allocating $40 million to Moldova as part of new development project

CHISINAU. June 18 (Interfax) - The Board of Executive Directors of the World Bank approved a $40 million budget for its Supporting Growth and Resilience Development Policy Operation Project in Moldova.

The World Bank office in Moldova reported on Tuesday "the program is designed to strengthen resilience of refugees and households and foster sustainable growth through enhanced competition and private sector-led growth while keeping momentum on the long-term agenda of economic convergence to the European Union (EU) and climate resilience."

Following a recession in 2022 and a slow recovery in 2023, moderate economic growth in Moldova is projected this year, supported by a recovery in household incomes, World Bank analysts said.

This operation is part of a larger financial assistance package supported by the IMF, the EU and the World Bank. Parallel funding is expected from Global Affairs Canada and the Japan International Cooperation Agency. The operation will receive a $10.5 million grant from the Moldova Growth, Resilience and Opportunities for Well-Being program.

Moldova has been cooperating with the World Bank since 1992. The World Bank has allocated over $2.1 billion for more than 70 projects during that period. Currently, the WB portfolio includes 14 active projects with a total commitment of $849 million.