Moldovan cabinet holds meeting

Chisinau, 21 April /MOLDPRES/ - Prime Minister Ion Chicu today chaired an online cabinet meeting and two subjects were on the event’s agenda, the government’s communication and protocol department has reported.  

Ion Chicu referred to the need to find solutions to new economic realities triggered by the restrictions imposed by the management of the epidemiological situation. The pandemic caused a global economic crisis. After initial estimations, the national economic crisis, enhanced by the global economic crisis, will generate a budget deficit of 16.2 billion lei.

The government will identify ways of financing the budget deficit, in order to ensure the functionality of the public system and the observance of the social commitments.  

Deputy Prime Minister, Finance Minister Serghei Puscuta presented for approval a draft law on the ratification of an agreement on loan between the governments of Moldova and Russia worth 200 million euros, at an interest rate of two per cent. The credit is provided for ten years. The disbursement will take place in two installments: 100 million euros will be transferred in a period of 30 days after the date of the agreement’s ratification and another 100 million euros will be transferred at a demand by Moldova’s government till 31 October 2020.  

The two-per cent interest rate is one of the lowest rates, in the context of other crediting instruments in this currency in the present circumstances. The loan can be returned in advance without additional costs for Moldova.  

Serghei Puscuta unveiled for adoption a draft law on the ratification of an agreement between Moldova’s government and the International Monetary Fund on an emergency loan. The loan has two components and amounts to about 234 million dollars.   

On the one of the components, 156 million dollars, the interest rate is of 1.5 per cent, with 3 years and 3 months grace period and a repayment period of 1 years and 9 months. Additionally, Moldova will pay a one-off 0.5 per cent commission, i.e. 780,000 dollars.     

On another component, 78 million dollars, the interest will be 0 per cent and a period of grace of 5 years and 6 months.

The borrowing of the emergency loan from IMF was possible especially due to the successful completion of Moldova’s programme with the Fund in March 2020.  

Ion Chicu thanked the Finance Ministry for the intensity of the negotiations with the foreign partners, which allow continuing the payments of social benefits, maintaining the functionality of the health and education systems, as well as for investing in diverse modernization projects.   

The drafts are to be submitted to parliament for examination in short terms.