May 26 (SeeNews) - French Development Agency AFD said that it plans to grant 60 million euro ($64 million) to support for Moldova's public policies in the energy and railway sectors.
The financial aid plan will be submitted to AFD's board for final approval in mid-June, AFD said in a press release on Wednesday, announcing the launch of operations in Moldova.
Moldova's infrastructure and regional development ministry and AFD signed two agreements which will pave the way for technical and financial cooperation to improve energy security and build sustainable railways in Moldova.
"These actions mark the beginning of our cooperation with Moldova," AFD CEO Rémy Rioux said during a visit to Chisinau. "And they will be felt by the Moldovan population in their daily lives."
Via its subsidiaries Proparco and Expertise France, AFD will combine budgetary support in Moldova for public institutions, the financing of private companies as well as technical assistance.
During the same visit, an 8 million euro loan was signed by Proparco and the microfinance institution MicroInvest to support entrepreneurs and SMEs in Moldova.
AFD said its initiatives in Moldova will focus on the country’s gradual convergence with European Union standards with an eye to joining the EU, the implementation of the Paris Agreement on climate and the adaptation to the consequences of the war in Ukraine.
At the Moldova Support Conference held on April 5 in Berlin, France pledged support in the order of 126 million euro, including 75 million euro via AFD. The first budgetary aid of 15 million euro on behalf of the French state to face the consequences of the war in Ukraine was approved in mid-April.
($=0.9367 euro)