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Moldova: Loans To Aid Economic Reforms

Washington, 10 September 1997 (RFE/RL) - The World Bank's International Development Association (IDA) has approved two loans totaling about $100 million to Moldova to support the government's economic reform program.

The credits will be used for short-term support of basic public services along with providing foreign exchange to purchase imports critical for the country's economic stabilization and recovery.

IDA says the loans will help Moldova de-monopolize and privatize the energy sector, accelerate land reform and privatization, reform the pension system, and complete enterprise privatization.

While helping to protect the country's short-term credit worthiness, the program will try to clear bottlenecks to improving living standards.

IDA loans charge only a small annual fee and are repayable over 35 years, with a 10-year grace period. The credits will be disbursed in three tranches based on progress on the reforms.