News

photo source: gov.md

Posted by: trm.md

News / Economic

08 July 2020 / 16:30

Decision to start negotiations on an EU loan

The Government approved today in a Government meeting a decision on the initiation of negotiations and the approval of the signing of the Loan Agreement between the Republic of Moldova and the European Union on macro-financial assistance for our country.

According to Deputy Prime Minister Serghei Puşcuţa, Minister of Finance, the loan agreement provides for the granting of macro-financial assistance amounting to up to 100 million euros in two equal installments within 12 months.

The disbursement of the first tranche is unconditional, while the second will depend on the progress made in implementing the provisions of the Memorandum of Understanding and the conditionalities to be agreed between the Republic of Moldova and the EU. Six actions are proposed for the disbursement of the second tranche.

"The interest rate for each tranche will depend on the cost at which the European Commission will borrow from the international financial market," said Serghei Puşcuţa.

The objective of macro-financial assistance is to reduce the external financing constraints of the Republic of Moldova, to mitigate the balance of payments and the needs of the budget.

"The disbursement of this money also depends on whether the project for which we have committed ourselves is approved by the Parliament. There is the sum of  100 million and if the Parliament does not want to approve the project, we will not be able to take this money from the EU ", concluded the Prime Minister Ion Chicu.

Show Comments