Moldovan parliament ratifies agreement on loan with Russia

Chisinau, 23 April /MOLDPRES/ - The parliament today ratified the agreement with Russia’s government, under which Moldova will receive a state financial loan worth 200 million euros. The document was passed in two readings by 56 MPs.  

The draft agreement was unveiled by Prime Minister Ion Chicu and was discussed during more than two hours. The parliament’s opposition criticized the document and did not back it.

According to the PM, the financial loan on behalf of Russia will be used for financing the Moldovan state budget’s needs, including for the implementation of investment projects. Chicu also said that the loan did not entail risks or commitments but the standard ones, stipulated in the clauses of the agreement. The loan can be returned before term without any penalty or other taxes.   

According to the agreement’s provisions, the sum of 200 million euros will be disbursed during 2020, in two installments, each amounting to 100 million euros. The first installment will be accessed no later than 30 days after the date of the  agreement’s entrance into force.

The interest rate for the loan provided is 2 percent annually. The loan’s maturity is 11 years, with a grace period of about 1 year. The payment of the interest will be semi-annual for each installment.

The agreement between the governments of Russia and Moldova on the providing of a state financial loan to the Moldovan cabinet was signed by Ambassador of Moldova to Russia Andrei Neguta in Moscow on 17 April 2020, based on the powers given by Foreign Affairs and European Integration Minister Oleg Tulea.