The Global Concessional Financing Facility (GCFF) enables eligible middle-income countries to borrow at more favorable rates by reducing the interest on MDB loans for projects that benefit both refugees and host communities. Moldova accessed $50.7 million in GCFF grants that lowered interest rates on IBRD financing for five projects addressing challenges posed by the Ukrainian refugee crisis precipitated by Russia’s invasion of Ukraine.
One of the projects was the Moldova Emergency Response, Resilience and Competitiveness Development Policy Operation (DPO1) in 2022. It was part of a package of coordinated financial assistance to Moldova from international partners, together with financing from GCFF. The operation supported the Government of Moldova’s emergency response, by providing a crucial social safety net for both refugee and host households.
Recognizing the increasing permanence of refugees and the necessity to shift from emergency measures to long-term support, a second DPO was launched in 2023. The operation supported Moldovan policy initiatives to provide a more secure legal status for Ukrainian refugees, strengthen civil protection response and management systems, and improve the main social assistance program. It also helped introduce a temporary protection regime, to which more than 27,700 refugees, including over 8,300 children, had gained status by December 2023.
Both operations were supported by $97.7 million from the Multi-Donor Trust Fund for Co-financing the Moldova Development Policy Program. The success of this trust fund in helping advance these key reform efforts prompted the creation of the Moldova–Growth, Resilience, and Opportunities for Well-being (M-GROW) Program Multi-Donor Trust Fund in December 2023 to provide continuing programmatic support for Moldova.
The activities in this story were implemented with the generous support of the following development partners:
Development partners of GCFF:
Canada, Denmark, European Commission/European Union, Germany, Japan, the Netherlands, Norway, Sweden, United Kingdom, United States.
Development partners of M-GROW:
Ireland, Norway, United Kingdom.
Development partners of precursor MDTF for Co-financing the Moldova DPO:
Ireland, Norway, Sweden, Switzerland, United States.
For more information on how trust funds help coordinate, innovate and catalyze development action, please see the World Bank Group’s FY24 Trust Fund Annual Report.
