Japan offers 100 million dollar- loan to Moldova
17:38 | 10.07.2023 Category: Economic
Chisinau, July 10. /MOLDPRES/- Japan will provide Moldova with a concessional loan of up to 13.5 billion Japanese yen (about 100 million dollars). The financial assistance is meant to mitigate the impact of the war in the neighboring state on the citizens and to support the reforms aimed at increasing the country's economic resilience and competitiveness.
Ambassador of Japan to Chisinau Yamada Yoichiro and Minister of Finance Veronica Sirețeanu exchanged notes today for carrying out development policy loan for economic recovery. Senior Vice President of the Japan International Cooperation Agency (JICA) Ando Naoki and Veronica Sirețeanu signed a loan agreement for implementation of the program.
The loan is offered for a term of 40 years, with a grace period of 10 years, at an interest rate equal to TORF (Tokyo Term Risk Free Rate), + 1.3% annually.
Sirețeanu said that the support will be used to finance the needs of the state budget for 2023, directed towards supporting the political and institutional reforms of Moldova, building resilience and increasing competitiveness, in order to reduce vulnerabilities to future shocks.
"Japan wants to continue the collaboration with the Government and citizens of Moldova, to promote integration with Europe and to overcome the challenges generated by Russia's invasion of Ukraine. We are with Moldova to build a democratic, prosperous and safe future", said Yamada Yoichiro.
Ando Naoki said that through the loan, Japan supports the Moldovan government's efforts to respond to the crisis and institutional reform. “Also, JICA continues our cooperation in the form of technical assistance by sending our experts in the health and industry development. We hope such cooperation will help overcome the unprecedented difficult situation in which your country finds itself", Ando Naoki said.
During the last years, Japan has financed several projects in improving the quality of life and promoting sustainable economic development in Moldova, among which: the agricultural machinery and equipment modernization project worth 2.1 billion Japanese yen; the economic and social development program, which provided medical equipment worth 100 million Japanese yen; the ¥1.6 billion fire prevention equipment improvement project; medical system strengthening program worth 1 billion Japanese Yen, Human Security Grant Program "Kusanone" worth about 215 million Japanese Yen during 2019-2022.
Photo: Embassy of Japan in Moldova
