The Republic of Moldova will receive US$45 million in budget support based on a financing agreement signed with the International Development Association (IDA) and a lending agreement signed with the International Bank for Reconstruction and Development (IBRD). In the December 22 sitting, Parliament voted to ratify the accords with the two institutions, IPN reports

The ratification bills provide that the money will go to improve the predictability of the business climate in Moldova, create equal competition conditions, reduce costs, strengthen the financial sector’s stability, promote transparency and improve access to financing.

Minister of Finance Octavian Armasu said that about US$17 million will be disbursed under the agreement with the IDA and over US$27 million under the agreement with the IBRD. “The loans are designed to finance the deficit and national debt. The national debt next year will represent 42% of the GDP. The agreements are aimed at supporting reform programs that will generate economic development, while the growth of 3-4% a year enables us to repay this debt,” he stated.

Stefan Creanga, chairman of the Parliament’s commission on economy, budget and finance, said the two agreements will support the Government in its efforts to encourage the business sector to increase investments in the country and create more jobs. The budget support will be used to ensure transparency in the business sector and stability in the financial sector.