Debt relief and financing sustainable economic recovery in Moldova

Project title: Debt relief and financing sustainable economic recovery in Moldova

Donor: Soros Foundation-Moldova

Implementation period: November 2021- May 2022

General context:Moldova has a unique opportunity to make sure its external debt supports the financing of core priorities for the country. After a recent victory of pro-reform politician Maia Sandu in the Presidential election in November of 2020 and a landslide victory of her party in the early Parliamentary elections in July of 2021, Moldova will face a window of opportunity to attract large volumes of development assistance and loans under advantageous terms. The international community will seek to support a serious pro-reform agenda of the President, Parliament and Government, especially given the existence of a political will to implement structural reforms. The government should change the way it does business and defines its priority spending areas. It should no longer just invest small bits of external assistance in social spending programs and the environment, with uncertain impact, but should rather make them core priorities of the government, to which it will be committed in the medium to long term. 

The overall goal: is to offer solutions and conduct public advocacy campaigns for effective external debt use and management to promote sustainable, green, and inclusive development and social investment/spending.

• Increased accountability and responsiveness of the government/parliament in managing external debt and foreign financing.
• Advocate for socially responsible conditionalities of financial assistance, making sure they do no lead to hurting austerity measures, which will impact social protection, public services and especially the outlook of the vulnerable groups.
• External financing is contracted and spent efficiently on strategic areas which promote the objectives of green growth, stipulated in Sustainable Development Goals and the National Development Strategy “Moldova 2030”.

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The project is funded by the Soros Foundation-Moldova and implemented by the Independent Think-Tank Expert-Grup in partnership with the Institute for Strategic Initiatives (IPIS).