Announcement of a World Bank Loan to Moldova for The Rehabilitation Project on October 22, 1993

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 94/23 Contact: Jan Pakulski Tel: (202) 473-1797 Moldova Rehabilitation Loan The following is information on a project approved by the World Bank's Board. DATE: October 22, 1993 WORLD BANK GROUP SUPPORT: World Bank loan: $60.0 million. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.43 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. TOTAL COST: $60.0 million OTHER PROPOSED FINANCING: Additional balance of payments financing IMPLEMENTING AGENCY: Ministry of Foreign Economic Relations ESTIMATED COMPLETION DATE: March 1995 PROJECT DESCRIPTION: The objectives of the Rehabilitation Loan are to: (a) support the government's reform program; (b) finance imports of essential production inputs and health care supplies; (c) support foreign exchange markets and allow the private sector access to foreign exchange; and (d) catalyze the provision of technical assistance and balance of payments support by other donors. The project includes: (a) a direct imports component (DIC) which is expected to finance mainly imports in the energy, agriculture, industry, and health sectors and (b) a foreign exchange component (FXC) to support the access of enterprises to the foreign exchange market. The proceeds of the loan will finance 100 percent of the foreign exchange costs of imports under the DIC and the FXC, subject to the standard negative list.