30 million EUR to improve road connections with the EU
The European Investment Bank (EIB) signed today a loan of 30 million EUR with the Republic of Moldova, to support the rehabilitation of roads linking the capital Chisinau to the EU border. This is the first ever operation of the EIB in Moldova. EIB, the Bank promoting European objectives, supports the European Neighbourhood Policy, which aims to strengthen the links between the enlarged EU and its Neighbours and promote an area of prosperity, stability and security. The loan was signed earlier today in Chisinau by Moldovan Minister of Finance Mihail Pop and EIB Vice-President Torsten Gersfelt, in the presence of First Deputy Prime Minister Zinaida Greceanii.Exemplary cooperation between International Financial Institutions: This project, piloted by the World Bank (WB), is being co-financed by the WB, the EIB and the EBRD. The WB and the EBRD are providing loans of respectively 16 million USD and 30 million EUR to rehabilitate the main North-South road axis in the country. The three loans are closely coordinated with the International Monetary Fund and the European Commission.
Transport networks seen as vital for the Moldovan economy: Moldova is making significant efforts towards improving its macroeconomic situation and has achieved an average annual growth rate of 6 - 7% over the past six years. Improving road infrastructure is expected to boost Moldova’s economic revival: it will reduce transport costs and improve road safety, help secure access to EU markets and new trade opportunities and encourage foreign direct investment into the country.
Background
The European Investment Bank (EIB), the European Union's long-term lending institution, supports investments furthering EU integration, in support of 6 priority EU policies: cohesion and convergence; support to SMEs; environmental sustainability; research, development and innovation; Trans-European Networks; and sustainable, competitive and secure energy. It also operates outside the EU within the framework of the EU's external policies for co-operation and development. Owned by EU’s 27 Member States, the EIB raises its funds on the capital markets (AAA-rated issuer). In 2006, it borrowed EUR 48bn and lent a total of EUR 45.8bn, of which EUR 39.8bn in the EU.