CHISINAU, May 8, 2025-The World Bank's Board of Executive Directors approved today the Moldova Supporting Economic Opportunities and Climate Transition Development Policy Operation (DPO) for the Republic of Moldova, aimed at boosting Moldova's economic growth prospects and energy security while aligning with the European Union (EU) standards.
This $90 million operation builds on the previous Moldova Emergency Response, Resilience, and Competitiveness DPO series and the Moldova Supporting Growth and Resilience DPO. These budget support operations align with the current World Bank Country Partnership Framework for Moldova and are part of the World Bank's broader effort to support the government in responding to the energy and refugee crises and building resilience against future shocks.
Moldova has faced multiple crises that have strained household purchasing power and government resources, exposing weaknesses in the country's growth model, underscoring the urgent need for a fundamental economic transformation. Moldova has a unique opportunity to accelerate reforms that will enable stronger economic growth and faster job creation. Integration with EU markets and institutions paves the way for a more productive, diversified, and private sector-driven economy.
"Moldova has a unique opportunity to capitalize on the momentum of its EU candidacy. World Bank support will underpin critical reforms to establish a functional market economy, enhance competitiveness, equip the workforce with necessary skills, and bolster energy security," said Inguna Dobraja, World Bank Group Country Manager for Moldova.
The World Bank's support will focus on three main areas: 1) Boosting private sector competitiveness by creating a fair competition framework, enhancing the insolvency framework to enable the restructuring of distressed but viable firms, and improving the business environment to attract more investments; 2) Improving employability and education for youth by introducing dual education in universities, combining classroom instruction with practical experience in partnership with the private sector; and 3) Strengthening the regulatory framework for displaced individuals in Moldova, providing them with long-term legal status, stable living conditions, and continuous access to resources and support services to secure long-term employment.
This operation is part of a broader financial assistance package, including support from the International Monetary Fund (IMF), the EU, and the World Bank. The operation will benefit from $7.7 million in grants from the Moldova - Growth, Resilience and Opportunities for Well-being (M-GROW) program and an $8 million grant from the Global Concessional Financing Facility (GCFF) to support authorities' efforts to deal with the refugee crisis. To date, GCFF has provided Moldova $67.22. million in grants, enabling $557.91 million in loans on concessional terms from the World Bank to support host communities and refugees in education, emergency response, progressive refugee policies, capacity building, resilience, and competitiveness. The GCFF contribution made available to Moldova under this operation was provided by the Government of the Netherlands.
Since Moldova joined the World Bank in 1992, over $2.3 billion has been allocated to more than 70 operations in the country. Current areas of support include energy, regulatory reform and business development, land registration and valuation, education, roads, health and social sectors, agriculture, water and sanitation. Current engagements by the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA), members of the World Bank Group, include projects in the financial sector, private and public sectors advisory, and risk insurance.
