Decisions on agreements on loan with Russia, IMF published in Moldova's Official Journal

Chisinau, 21 April /MOLDPRES/ - The Official Journal (Monitorul Oficial) from 21 April published the government’s decision on the approval of the draft law on the ratification of the agreement between the governments of Russia and Moldova on the providing of a state financial loan. The same issue of the Journal also contains a decision on the attraction of a foreign state loan from the International Monetary Fund.   

Under the provisions of the agreement between the governments of Moldova and Russia, Moldova will receive a sovereign state loan worth 200 million euros. The disbursement of this credit will take place in two installments. the first one, worth 100 million euros, will be provided in  a period of no more than 30 days after the entrance into force of this agreement and the second installment, amounting to 100 million euros, not later than on 31 October 2020. Moldova commits to pay a 2-per cent annual interest and the loan’s maturity is 11 years.    

Moldova will receive an emergency loan worth 234 million dollars from IMF. The foreign state loan from the Fund will be provided through the Rapid Credit Facility (RCF) and through the Rapid Finance Instrument.   

According to PM Ion Chicu, these two loans are quite necessary for Moldova, in the extremely difficult conditions triggered by the COVID-19 pandemic.  

Source: www.monitorul.md