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Following France’s pledge at the Moldova Support Conference on April 5th in Berlin, Moldova and Agence Française de Développement (AFD) have signed a credit facility agreement worth 60 million euros on October 28th. The financial resources will help the Republic of Moldova to promote renewable energies, enhance the sustainability of the railway sector and mitigate the impact of the energy crisis on disadvantaged families.
In the short run, this policy-based budget support is a response to immediate financing needs of Moldova in the context of the Ukrainian crisis (increase in energy prices, influx of refugees). In the medium term, this program will support regulatory reforms which contribute to the convergence to EU standards and norms, to the diversification of energy sources and to the decarbonization of the Moldovan economy.
A long-term partnership between AFD and the Republic of Moldova
Present in the Republic of Moldova since February 2022, AFD has been fully mobilized to support the country’s ambition towards a more sustainable and inclusive development in line with European Union standards. Technical cooperation is already under way with Moldelectrica and Calea Ferata din Moldova (CFM).
In the current context of conflict in Ukraine and major budgetary and energy challenges faced by the Republic of Moldova, this €60 M financing lays the foundations for a long-term partnership combining investments and public policy reforms, in support of the decarbonization of the economy.
By the end of 2022, AFD will have signed and disbursed 75 million euros of budget support to the Republic of Moldova.
Cécile Couprie, AFD Regional Director for Eurasia, signed the agreement during her visit and highlighted: “These actions mark an acceleration and strengthening of our cooperation. The support to the Republic of Moldova and its European trajectory in the current context is of outmost importance, and will be at the agenda of the upcoming Moldova Support Conference in Paris”.
Dumitru Budianschi, Minister of Finance, said: “AFD’s program, in parallel to World Bank’s Development Policy Operation, will support Moldova to cope with the budgetary & energy crisis. On a longer term, this public policy financing will support the implementation of reforms to strengthen the competitiveness of rail transport (versus road) and to develop renewable energies (versus gas)”.
Press contact: Alexandre Lorot | +373 609 57 259 | +373 222 40 776