Moldova and the European Union signed on Tuesday an agreement to provide Chisinau with a loan of 100 million euros ($114.4 million) over 15 years, the country's Finance Ministry said
CHISINAU (Pakistan Point News / Sputnik - 21st July, 2020) Moldova and the European Union signed on Tuesday an agreement to provide Chisinau with a loan of 100 million euros ($114.4 million) over 15 years, the country's Finance Ministry said.
"[Moldovan] Finance Minister Serghei Puscuta and the head of the National Bank of Moldova, Octavian Armasu, signed today a loan agreement between Moldova and the European Union on macro-financial assistance in the amount of 100 million euros. As per the agreement, the loan will mitigate restrictions on the country's external financing, as well as lower the balance of payments and budget needs," the ministry said in a statement.
Puscuta noted that the signing of the loan agreement was generous support from the EU at a difficult time amid the COVID-19 pandemic.
According to the ministry, the loan will be provided in two stages. The allocation of the first tranche will depend on the signing of a memorandum of understanding, while the second tranche will depend on the progress made in implementing the provisions of the memorandum.
The loan will be granted within 12 months, with its maturity due in 15 years, which must be repaid in one installment. It is noted that the interest rate applied for each tranche will be determined individually.
