Moldova - First Private Sector Development Project

Document of The World Bank FOR OFICIAL USE ONLY Report No. P-6640-MD MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED SINGLE CURRENCY LOAN WITH A TRANCHE OF US DOLLARS IN AN AGGREGATE AMOUNT OF US $25 MILLION EQUIVALENT AND A TRANCHE OF DEUTSCHE MARK IN AN AGGREGATE AMOUNT OF DEM14 MILLION EQUIVALENT TO THE REPUBLIC OF MOLDOVA FOR THE FIRST PRIVATE SECTOR DEVELOPMENT PROJECT NOVEMBER 17, 1995 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (as of November 1995) Currency Unit = Leu I Leu US$0.22 US$1 = Lei 4.5 MOLDOVA - FISCAL YEAR January I - December 31 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS CIS - Commonwealth of Independent States EAA - Enterprise Assistance Agency EAP - Enterprise Assistance Program ESSC - Enterprise Sector Strengthening Component EU - European Union EU (TACIS) - European Union Technical Assistance Program for CIS countries FSSC - Financial Sector Strengthening Component IAS - International Accounting Standards IBRD - International Bank for Reconstruction and Development IMF - International Monetary Fund FSU - Former Soviet Union MOE - Ministry of Economy MOF - Ministry of Finance MPASP - Ministry of Privatization and Administration of State Property NBM - National Bank of Moldova NMP - National Material Product PFI - Participating Financial Intermediary PIU - Project Implementation Unit SCC - State Creditors Committee SME - Small- and Medium-Scale Enterprises STA - State Tax Administration TA - Technical Assistance TAO - Tax Administration Office TU - Technical Unit USAID - United States Agency for International Development  FOR OFFICIAL USE ONLY REPUBLIC OF MOLDOVA FIRST PRIVATE SECTOR DEVELOPMENT PROJECT Loan and Project Summary Borrower: Republic of Moldova Implementing Agency: Ministry of Finance (MOF) Beneficiaries: Ministry of Finance; National Bank of Moldova (NBM); Ministry of Economy (MOE); participating financial intermediaries (PFIs); private enterprises. Poverty Category: N/A Amount: US$25 million equivalent and DEM14 million equivalent (about US$10 million). Terms: A single currency loan repayable over twenty years, including a five year grace period and in two tranches: a US dollar tranche in an amount of US$25 million and a deutsche mark tranche in an amount of DEM14 million equivalent at the Bank's standard US dollar and DEM Libor-based rates. Commitment Fee: 0.75% on undisbursed credit balances, beginning 60 days after signing, less any waiver. Onlending Terms: Bank funds under the credit component will be onlent by the MOF to PFIs in US dollars or deutsche marks; from the PFIs to final borrowers in the same currency at freely determined interest rates. The cost to PFIs will reflect the cost of Bank funds, the administrative costs of the Technical Unit (TU), part of the administrative cost of the Project Implementation Unit in the MOF and a premium to cover the credit risk associated with the PFIs. Depending on subproject requirements, the maturity of subloans granted to finance capital formation would vary from 1 to 5 years; working capital subloans would be for a maximum of 18 months. Financing Plan: Local Foreign Total Government of Moldova 6.50 6.50 Govemment of Netherlands 2.10 2.10 Govemment of Germany 2.00 2.00 EU (TACIS) 1.50 1.50 USAID 1.40 1.40 IBRD 35.00 35.00 Enterprises 0.50 0.50 Total 7.00 42.00 49.00 Economic Rate of Return: N/A Staff Appraisal Report: 14555 MD Map: IBRD no. 24285R2 Project ID Number: MD-PA-8561 This docunent has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed wiihout World Bank authorization.   MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE IBRD TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF MOLDOVA FOR THE FIRST PRIVATE SECTOR DEVELOPMENT PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to the Republic of Moldova for the equivalent of US$25 million and DEM14 million (about US$10 million) to help finance the First Private Sector Development Project. The loan would be at the standard LIBOR-based interest rate for US dollar and deutsche mark single currency loans, with a maturity of twenty years, including a five year grace period. 2. Country/Sector Background: With a population of 4.3 million and a land area of 33,700 square kilometers, Moldova is the most densely populated country of the Former Soviet Union (FSU). Moldova's rich soil and moderate climate are advantageous for agricultural production. During the Soviet period, Moldova developed as a producer of raw and processed foodstuffs (primarily grapes, grains, wines, fruit, vegetables and livestock). Agriculture (about 40 percent) and the agro-processing industry (about 20 percent) accounted for most of the National Material Product while the industrial sector (household appliances, wood processing, high technology electrical goods and inputs for defense industries) accounted for an additional 20 percent. Moldova's dependence on imported energy, and the fact that Moldovan enterprises were fully integrated parts of the Soviet centrally- planned production line, make it highly interdependent with other FSU economies. Since its independence in August 1991, Moldova has suffered one of the largest terms of trade shocks of any FSU country as well as a series of climatic disasters. All of this contributed to a 60 percent fall in GDP from its level in 1990. 3. Moldova initiated a reform program as early as 1990' in the economic and legal spheres, aimed at the creation of a market economy. In March 1993, Parliament adopted the Government's comprehensive Action Program for the stabilization and recovery of the economy. This was followed by the introduction of the new currency, the leu, supported with firm financial policies. Although progress has been hampered by the legacy of central planning practices, significant results have been achieved under both the stabilization program (supported by the IMF and the IBRD) and the structural reform program (supported by the IBRD). Budget transfers to enterprises were cut to about one percent of public expenditure in 1993 from 21 percent in 1992, and the largest consumer subsidies were eliminated in May 1994. The fiscal deficit was narrowed from over 23 percent of GDP in 1992 to 8 percent in 1994. Annual inflation, almost 2,000 percent in 1992, fell to one percent in the third quarter of 1995. 4. Structural reforms accelerated in 1993 with substantial liberalization of trade and prices, the abolition of preferential credit, and initial steps to reform agricultural policies and improve social protection. The new Government, which took office in March 1994, has deepened structural reforms. The Govermment intends to transfer roughly 80 percent of productive state assets, which includes the large majority of productive enterprises, into private forms of ownership. Parliament approved a Privatization Law in July 1991, but implementation was delayed, initially by the outbreak of conflict over the status of Transnistria and continuing debate on methods of privatization. Significant 1/ Moldova became a member of the World Bank in August 1992.  progress was made from June 1994 onwards, with the acceleration of mass privatization, although there is still resistance to small-scale privatization from local authorities and from the Department of Trade, which oversees retail shops. The Government intends to encourage local and foreign strategic investors to participate in privatization on a case-by-case basis. As of end-June 1995, 741 medium- and large-scale enterprises and 563 small-scale objects had been privatized through public auctions. 5. Enterprise Sector. Moldovan enterprises today are constrained by a number of factors inherited from the Soviet era: too many resources located in large loss-making enterprises; outdated equipment with almost no process or product flexibility; and inadequate management skills to cope with market-induced changes. Contraction in the enterprise sector has continued since 1990, but appears to have bottomed out in mid-1995. At the same time, there is little evidence at the enterprise level of activities which could lead to the development of new products and markets, higher efficiency, and better design and quality of products. The very slow pace of ownership change until mid-1994, Moldova's relative isolation from competitive pressures, and a negligible inflow of foreign investment have all contributed to a lack of enterprise adjustment. 6. The Goveniment is delivering a strong signal on payments discipline through the initiation of a program of enterprise restructuring and pilot liquidations of selected loss-makers. The Government has also made significant progress towards creating a supportive business environment by removing all export restrictions. All price and margin controls have been removed-with the exception of a short list of socially sensitive goods from which margin controls will be removed by end 1995-and the maximum tariff is being reduced in stages to 20 percent by December 31, 1995. The Government has removed all export taxes and has begun to implement a more rational tax structure through the introduction of a new corporate profits tax, excise taxes and VAT. 7. Financial Sector. As of July 1995, there were 22 commercial banks in Moldova: four large, former state commercial banks; 17 new domestic, mainly privately owned banks; and one foreign bank. The four large, former state banks were established in 1991 as joint-stock commercial banks by taking over the activities of Moldovan branches of specialized FSU banks. The Social Bank focuses on small businesses, Moldindconbank on industry and construction, while Agroindbank specializes in the agriculture and agro-industry sector. The Savings Bank, with over 1,000 branches, is the primary depository for household savings, and carries an explicit deposit guarantee from the Government. A core of new private banks has begun to emerge, some of which are growing very quickly in terms of both capital and assets. Seven of these banks are of significant size and they account for 29 percent of total bank credit, 35 percent of total regulatory capital, 21 percent of total assets, and 31 percent of total household deposits. 8. The four former state banks and some other banks in Moldova have been audited according to International Accounting Standards (IAS). These audits indicate that commercial banking performnance requires further strengthening. A high percentage of non-performing loans and excessive credit risk concentration appear prevalent in the system. There is also inadequate provisioning for non-performing loans. The existing GOSBANK accounting standards do not provide a sound guide to the underlying financial heaith of banks. 9. Project Objectives. The principal objective of the project is to support and help accelerate the Government's reform program in the enterprise and financial sectors, focusing in particular on strengthening the banking system and on the delivery of finance to support the development of private and privatized enterprises. The project provides financial resources for this purpose, and 2  technical assistance to improve the capacity of both the banking system to deliver such resources, and of enterprises to prepare plans to secure them. An important ancillary objective is to accelerate the required post-privatization adjustment of troubled firms, including the streamlining and release of unused assets into the hands of private entrepreneurs who are expected to use them more effectively. 10. Project Description. The project comprises two components: an enterprise sector strengthening component (ESSC) and a financial sector strengthening component (FSSC). The ESSC would facilitate growth of a population of viable and competitive enterprises by providing post- privatization assistance to selected large enterprises through a new, non-governmental Enterprise Assistance Agency (EAA). It also provides small and medium sized enterprises (SMEs) with the technical assistance necessary to prepare bankable investment projects. The ESSC would also finance the automation of the Tax Administration in the MOF. The FSSC would provide resources, through qualified participating banks, for loans to private and privatized enterprises for investment and working capital purposes. This component would also assist in the development of banking skills in the PFIs, the automation of the NBM, and the further development of the payments system. 11. Project Implementation. The borrower would be the Republic of Moldova. The executing agency would be the Ministry of Finance (MOF) where there would be a Project Implementation Unit (PIU) responsible for overseeing and coordinating the implementation of the two project components. The implementation of the FSSC component will be supported by the establishment of a Technical Unit (TU) within the NBM. The Enterprise Assistance Agency (EAA) will be the monitoring and coordinating unit for the technical assistance to be supplied from international and domestic sources under the ESSC. The implementation of the institution building part of the ESSC will be supported by the Tax Adm;nistration Office (TAO) of the MOF. Retroactive financing will be provided in an aggregate amount not to exceed the equivalent of US$3.4 million for purchase of computer equipment for the NBM, the payments, clearance and settlement system and the Tax Administration. 12. Project Sustainability. The mutually reinforcing nature of the two project components, as well as the institution-building elements of the loan, will help ensure project sustainability. In the enterprise sector, the project will develop an Agency-the EAA-to assist enterprises in their adjustment to the market environment; in the financial sector, capacity building will take place in the commercial banks and the NBM. Sustainability will also be promoted through the Government's commitment to policy reforms which support the development of the private sector. 13. Lessons Learnedfrom Previous Bank Involvement. The proposed project would be the Bank's first investment operation in Moldova. To date, Bank lending to Moldova has been confined to two adjustment operations, one emergency relief operation, and a pre-export guarantee facility. The financial and enterprise sector policy measures introduced under the two adjustment operations are supported and deepened under the proposed project. Credit components generally have not disbursed quickly in Eastern Europe. As a result, institutional development support under the project is being put in place before loan effectiveness, accompanied by substantial, donor-funded technical assistance for the training of staff of commercial banks, the NBM, managers of enterprises in the Enterprise Assistance Program (EAP), and local private sector consultants. This transfer of skills will strengthen managerial capacity in the two sectors and assist in the efficient adjustment of enterprises and banks. All of these factors will increase the likelihood that the credit line under FSSC will disburse expeditiously. 3  14. Economic Analysis and Rationale for Bank Involvement. Moldova is one of the most disciplined and successful countries of the FSU in terms of macroeconomic adjustment. Stabilization of the domestic currency vis-a-vis the US dollar has substantially increased the transparency of enterprise activities as well as their competitiveness in domestic and foreign markets. Budget subsidies to enterprises have been limited to relatively insignificant levels and they have become more transparent. Price distortions have been largely eliminated. Interest rates are determined at auction: over eighty percent of credit is made available through refinancing auctions and the remaining credit is offered at the auction-determined rate. Foreign exchange is purchased at regular inter-bank auctions. Commodity prices in both domestic and foreign trade have been liberaiized with very few exceptions. Consequently, there is no substantial risk of a downward shift in rates of return on particular projects due to the removal of policy related advantages. 15. Achievement of Core Economic Objective. To make enterprise adjustment and credit allocation decisions more sensitive to market forces, the project will build the institutional and regulatory capacity to carry out creditor-led restructuring, help to release assets into the market for use by new private enterprises, and create financing opportunities, as well as new sources of finance. The proposed creditor-led restructuring of privatized enterprises is designed to free assets which will help increase the number of small enterprises while the proposed line of credit will create financing opportunities for new entrepreneurs. The need to increase financing opportunities is addressed by both strengthening the capacity of commercial banks to lend, and making technical assistance available to emerging private businesses to prepare bankable projects. 16. JFiscal Impact. The line of credit will be fully self-sustaining. On-lending margins will be set to cover the costs the Government incurs while it operates and supervises the loan disbursement, as well as the risk of a default of PFIs. In addition, the technical assistance available to enterprises will create new value to be allocated between the enterprise itself and its creditors, including the State budget, usually one of the bigger creditors. Early results from the pilot stage of the project indicate that tax revenue from participating enterprises has already risen significantly. Funds borrowed for automating the Tax Administration are expected to be recouped by improving the collection of overdue and current taxes. 17. Analysis of Alternatives. During project preparation, an in-depth analysis of four possible channels for medium- and long-term funds was undertaken. In addition to the proposed credit line, options included the creation of (i) a venture capital fund; (ii) a credit cooperative; and (iii) a leasing company. Research showed that the credit line was the most feasible option at this stage: the other alternatives also generated significant benefits but required further institutional and regulatory development before the risks and costs they entailed could be well managed and reduced to reasonable levels. 18. Cost-benefit Analysis. A study of small businesses completed during project preparation, along with interviews with managers of a number of privatized enterprises, indicate that eligible sub- projects will be able to repay the PFIs. 19. On average, financial rates of return correctly reflect expected economic rates of return; there are no major distortions which could result in a systematically biased allocation of capital or in quasi- rents for some borrowers. As foreign trade has already been liberalized, Moldovan enterprises are already facing competitive prices and will not be able to benefit from protection under the current trade regime. 4  20. The project is also expected to generate substantial positive externalities through its demonstration effects, and by increasing the demand for credit (an enlarged number of potentially bankable projects) and matching this by an enhanced supply of credit (from the PFIs, strengthened by Technical Assistance (TA) under Bank's program). While the total cost of the project is relatively small in relation to the overall investment needs of the economy, it is expected that these demonstration effects will inject additional credits and investments into a growing pool of viable enterprises. 21. Rationale for Bank Involvement. This project is consistent with the limited Country Assistance Strategy (CAS) discussed by the Executive Directors at the time of presentation of the Rehabilitation Loan 3653-MD in October 21, 1993. A CAS is under discussion with the Moldovan authorities. It is scheduled to be presented to the Board in March 1996. The Bank is committed to assist Moldova in pursuing its program of economic reforms and its efforts to launch a sustainable economic recovery. Notwithstanding significant structural reforms, the response of the enterprise and financial sectors has been slow. Given the central role these two sectors play in transforming the economy, it is now vital to focus efforts on their simultaneous restructuring. 22. The Bank has played a leading role in coordinating donors' post-privatization restructuring support for the economy. It is well-placed to maintain a multi-sectoral policy debate with the Government while also orchestrating specific technical interventions designed to support the reform process in practical ways. 23. The main rationale for Bank involvement is to assist in the development of the private sector th.ough technical and financial support for: (i) the authorities' financial sector reform and institution building efforts; (ii) the creation of a legal, regulatory and institutional environment conducive to private business; and (iii) investment and working capital for private enterprises. 24. Agreed Actions: During negotiations, the following agreements were reached: (i) the provision of a regulatory framework enabling the implementation of the EAP and the establishment and staffing of the EAA; (ii) the adoption of an Institutional Development and Action Plan for the Banking Supervisory Department of the NBM; (iii) the establishment of the Bank Resolution Unit in NBM and its appropriate staffing; (iv) final agreement on the balance between loan and grant financing for the TA, taking into account the availability of grants from donors; (v) confirmation of the specific set of eligibility criteria for PFIs; and (vi) confirmation of additional eligibility criteria for commercial banks to participate in the SME window program. The sources of funding for the proposed credit line were confirmed: US$27.45 million equivalent from the proposed Bank loan, and US$5 million equivalent to be funded by allotments in the National Budget over a three-year period. Prior to Board presentation, the following actions were taken by the borrower: (i) the PIJ Director has been appointed; (ii) submission of banking regulations satisfactory to the Bank and satisfactory progress has been made with the implementation of an Institutional Development and Action Plan for the Banking Supervision Department of the NBM; (iii) substantial progress has been made with the pilot programn, including appropriate regulatory changes and progress satisfactory to the Bank with the restructuring of 3-5 pilot enterprises; and (iv) two banks, acceptable to the Bank, have expressed their willingness to participate in the credit line component, and have demonstrated their capacity to qualify as participating financial institutions. Specific conditions for effectiveness are: (i) the new law on Financial Institutions has come into force; (ii) the signing of a Grant Agreement, satisfactory to the Bank, for the establishment and staffing of the TU; (iii) the signing of at least two Subsidiary Loan Agreements, satisfactory to the Bank; (iv) the signing of a Funds Transfer Agreement, 5  satisfactory to the Bank, between the MOF and the EAA; (v) the conclusion of a Fiscal Agency Agreement, satisfactory to the Bank, between the MOF and the NBM; and (vi) the finalization and adoption of a Credit Line Regulation Manual (CLRM) with an Annex on environmental review procedures for individual subprojects. 25. Poverty Category: N/A 26. Environmental Aspects: The project is classified as a category "B" project involving intermediary lending. As part of the CLRM Annex, environmental review procedures for individual subprojects will be prepared by the Govemment with technical assistance available through this project. The manual provides the guidelines to classify, from an environmental perspective, each subproject to be financed by the credit line. The project requires the development of a process under which local environmental laws and regulations will be applied by loan beneficiaries and certified by appropriate environmental authorities. Such a process reduces the Bank's direct involvement in the supervision of this aspect of subprojects. 27. Program Objective Categories: The proposed project supports the development of a policy framework conducive to private sector development. 28. Participatory Approach: The Ministries of Finance, Economy, and Industry as well as the NBM and commercial banks have been heavily involved in the design of the project and, as a result, a number of regulations that will support the objectives of the proposed project have already been adopted. Substantial assistance to help banks strengthen their capital position and streamline their business is being provided to the banking sector as part of a continuum of assistance being provided by the IMF and Bank. During project preparation a number of seminars have been delivered on aspects of enterprise and banks restructuring, as well as a separate seminar for all commercial court judges on bankruptcy. In addition, key professional counterparts have been sent for training to the IBRD's Economic Development Institute. This has been supplemented by study tours for ministers and senior civil servants. An extensive survey was conducted of more than 100 SMEs, focusing on the major constraints they face in fully establishing themselves within the private sector. Finally, the Bank was very active in coordinating donor support to the banking and the enterprise sectors within the framework developed under this project. All of these activities have generated support for the project concept within Moldova. 29. Project Benefits: Anticipated benefits of the proposed project are: (i) strengthening the supply response to the Government's reform program through the introduction of a comprehensive program of support for the development of SMEs and an Enterprise Assistance Program for restructuring troubled enterprises; (ii) strengthening of the financial infrastructure by upgrading the payments system, automation of the Tax Administration and the NBM; (iii) improvement in the quality of banks by strengthening the regulatory and supervisory environment in which they operate; and (iv) enabling privatized and new private enterprises to obtain financing at competitive rates for export-oriented investments and working capital needs. 30. Risks: Risks include: (i) increasing pressure on the Government to reverse the reform measures as the lack of supply response continues-this risk is mitigated by the expected positive demonstration effect of enterprise turnaround and improved export performance resulting from the pilot phase of the project; (ii) possible backsliding by the Government that will lead to (a) the SCC not sending enterprises into bankruptcy that cannot be restructured successfully under the EAA, and 6  (b) future budgetary contributions being made to enterprises under EAA's care; (iii) institutional weakness of the NB3M and participating commercial banks which could lead to a slow disbursement of the credit component-technical assistance has been incorporated into project design specifically to address this risk; (iv) a further deterioration of the economy that could lead to a significant build-up of non-performing loans and which will have a debilitating effect on the already feeble financial sector, and (v) slow disbursement of the credit line due to competition from directed subsidized credits that might be reintroduced for political reasons. This last risk is reduced through an agreement with the Government that credit available through the budget-earmarked for enterprises-be channeled through the project-supported TU on market terms. Recommendation 31. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank and I recommend that the Executive Directors approve it. James D. Wolfensohn President Attachments: Schedules A - D Washington, D.C. November 17. 1995 7  I  Schedule A Page I of 1 REPUBLIC OF MOLDOVA FIRST PRIVATE SECTOR DEVELOPMENT PROJECT ESTIMATED COSTS AND FINANCING PLAN (US$ million) Local Foreign Total Estimated Project Cost Total Project Cost 7.00 42.00 49.00 Financing Plan IBRD 35.00 35.00 Gowemment of Moldova 6.50 6.50 Government of Netherlands 2.10 2.10 Government of Germany 2.00 2.00 EU (TACIS) 1.50 1.50 USAID 1.40 1.40 Enterprises 0.50 -- 0.50 Total 7.00 42.00 49.00 8  Schedule B Page 1 of 1 REPUBLIC OF MOLDOVA FIRST PRIVATE SECTOR DEVELOPMENT PROJECT Summary of Proposed Procurement Arrangements (US$49 million equivalent)' Not Bank Total Loan Subcomponent ICB NCP Other Financed Costs Computers 4.15 0.95 5.10 (4.15) (4.15) Credit Line 2.50 24.952 5.00 32.45 (2.50) (24.95) (27.45) Technical Assistance 3.403 8.05 11.45 (3.40) (3.40) TOTALS 6.65 28.35 14.00 49.00 (6.6 (28.35 (35.00) I/ Figures in parentheses are the respective amounts financed by the Bank loan. 2/ Loca] Commercial Practice is expected to be used as the procurement method for subloans under US$1 million equivalent. 3/ F-or technical assistance, services will be procured according to the Bank's Guidelines on the Use of Consultants (1981). Estimated IBRD Disbursements (US$ million) FY96 FY97 FY98 FY99 FY00 Annual 3 8 14 7 3 Cumulative 3 11 25 32 35 9  Schedule C Page 1 of I REPUBLIC OF MOLDOVA PRIVATE SECTOR DEVELOPMENT PROJECT TIMETABLE OF KEY PROJEcT PROCES5ING EVENTS (a) Tine taken to prepare the project: Seventeen months (b) Prepared by: Government with World Bank assistance (c) First Bank mission: December 1993 (d) Appraisal mission departure: May 1995 (e) Negotiations: November 1995 (f) Board Presentation: December 1995 (g) Planned date of effectiveness: February 1995 (h) List of relevant ICRs and PPARs: N.A. The project was prepared by Vladimir-Goran Kreacic, Senior Enterprise Reform Specialist, Enterprise and Finance Division, Country Department IV, Europe and Central Asia Region. 10  Schedule D Page 1 of 1 REPUBLIC OF MOI,DOVA PRIVATE SECTOR DEVELOPMENT PROJECT A. STATUS OF BANK GROUP OPERATIONS (As of November 10, 1995) US$ Million Loan No. Fiscal Year Borrower Proiect Loan Undisbursed 3569 MD 1993 Rep. of Moldova Emergency Drought Recovery 26.0 0.0 3653 MD 1993 Rep. of Moldova Rehabilitation 60.0 0.0 3815 MD 1994 Rep. of Moldova Structural Adjustment 60.0 0.0 3851 MD 1995 Rep. of Moldova Pre-Export Guarantee Facility 30.0 30.0 Total 176.0 Of Which: Repaid 0.0 Total held by Bank 176.0 Total amount sold 0.0 of Which: Repaid 0.0 Total undisbursed 30.0 B. STATUS OF IFC OPERATIONS As of yet, there are no IFC operations in Moldova. (Moldova joined the IFC on March 10, 1995) 11  MAP SECTION   t 28< ~~~~~~~~~~~~~~~~~~IBRD 24285R2 T. TN.mro M O L D O V A ag _gai!eVt ~~~~~~~~~U K R A I N E _;ich en; i ,/ << ~~~~~~~~~~~~~T. V-a-ss