Government approves ratification of loan agreement between Moldova and European Union on macro-financial assistance.
During the meeting on Friday, July 31, the Government approved the draft laws for the ratification of the Loan Agreement between Moldova and the European Union on macro-financial assistance for Moldova, as well as the Memorandum of Understanding in this regard.
According to Deputy Prime Minister Serghei Pușcuța, the Loan Agreement between the Republic of Moldova and the European Union on macro-financial assistance for the Republic of Moldova provides for the granting of a loan of up to 100 million euros, in two equal installments.
"The objective of the respective macro-financial assistance is to reduce the country's external financing constraints, to alleviate the balance of payments and budget needs and to support the Republic of Moldova in the current financial situation," Puscuta said.
The disbursement of the first tranche is unconditional, while the second tranche will depend on the progress made in implementing the provisions of the Memorandum of Understanding. For the disbursement of tranche no.2, 6 actions are proposed in areas such as: business climate, good governance and the fight against corruption, public finance management. Thus, this agreement supports a broad agenda of coordinated reforms with the European Union The maturity of the loan is a maximum of 15 years. The loan will be repaid in a single installment. The interest rate applied for each tranche will depend on the cost at which the European Commission will borrow on the international financial market.