Moldovan Constitutional Court publishes reasoning of decision on unconstitutionality of agreement on loan with Russia

Chisinau, 12 May /MOLDPRES/ - The Constitutional Court (CCM) today published the legal reasoning of the decision on the unconstitutionality of the agreement on the state financial loan with Russia worth 200 million euros. Thus, the reasoning reads that the article 7.2 of the agreement signed between the governments of Moldova and Russia, which regards the taking over by Moldova of private companies’ debts, is unconstitutional and contrary to the state’s interests.    

The constitutional judges stated that ‘’the formulation from the clause contained in the thesis one of the article 7, paragraph (2) of the Agreement is formulated doubtfully, does not clearly determine the extension of the responsibility of the state Republic of Moldova in case of late return of the loan and the interests owed. The complex formula of this clause contains a string of expressions and notions which can be interpreted variously and contradictorily, without being able to accurately establish what the signatories intended to envisage.’’      

The reasoning reads that the authors of the notifications submitted to the High Court, as well as the participants in the the public discussions before the Constitutional Court highlighted the intricacy of the texts ‘’the owed debt and/or the interests on the owed debt for any of the obligations of Moldova’s Side,’’ ‘’Moldovan debtors,’’ ‘’with the agreement of Moldova’s Side.’’  

The Constitutional Court stated that the text ‘‘the owed debt and/or the interests on the owed debt for any of the obligations of Moldova’s Side’’ was unclear under the aspect of the overall sum of the debt which must be returned by Moldova and the way of its formation. Given the lack of a clear limiting, the Court concludes that, through this agreement, Moldova might be obliged to reimburse both the sum of the loan provided by Russia and the debts and interests on the debts owed by Moldovan debtors who borrowed loans, with Moldova’s agreement, from Russian banks, which were insured with state guarantees of Russia.