Moldova, UE sign agreement on loan worth 100 million euros

Chisinau, 21 July /MOLDPRES/ - Deputy Prime Minister, Finance Minister Serghei Puscuta and Governor of the National Bank of Moldova (BNM) Octavian Armasu today signed an agreement on loan between Moldova and the European Union on macro-financial assistance worth 100 million euros and the Memorandum of Understanding to this effect.    

At the signing event, the finance minister thanked the European Union for the constant and long-lasting support provided to Moldova in its efforts of modernization and reformation.  

„The signing of the present agreement on loan fully meets Moldova’s interests and is an expression of the fact that the European Union is by the side of our country and its citizens on this period of ordeal for the entire mankind, triggered by the COVID-19 pandemic. We hope that we can further rely on the same generous support on behalf of the European Union. At the same time, Moldova’s government will continue the measures necessary for the country’s European integration and carrying out of the domestic reforms, of taking over the European standards and, respectively, the country’s development,’’ Puscuta said.     

Under the document, the loan will diminish the constraints of Moldova’s foreign financing and will attenuate the balance of payments and the budget’s needs. The loan is to be provided in two installments. The disbursement of the first installment is conditioned by the signing of the Memorandum of Understanding, while the second installment will depend on the progress made in the enforcement of the Memorandum’s provisions. Six actions are proposed to be carried out for the disbursement of the second installment.

The duration of the loan’s providing is 12 months at the most and its maturity is 15 years. The disbursement of the loan will take place in a single payment. The interest rate applied for each installment will depend on the cost the European Commission is to borrow money on the international financial market.