The government today approved the signing of a loan agreement between Moldova and the European Union for 1.9 billion euros
The money will be given not at once, but in installments, as the reform plan approved at today’s meeting is implemented. The approved document includes 56 reforms and 153 concrete measures structured in 7 main directions. The plan includes energy security and green transition, support for the private sector and the population, creation of digital infrastructure, social and managerial capital of the country, and state budget investment projects.
The main projects are: rehabilitation of at least 30 km of road on the M5 highway, construction of a regional hospital in Balti, a national program of forest plantations for 175,000 hectares and support for farmers by modernizing the centralized irrigation systems on the Prut and Dniester rivers. Another part of the funds (not specified) will come as budget support for pensions, allowances and compensations.
The borrowers are the Ministry of Finance and the National Bank of Moldova. The European Commission’s resources to the Reform and Growth Fund for Moldova are two-part: 400 million euros in the form of a grant from the EU, and 1.5 billion euros in the form of loans on favorable terms from 0.1% to just over 3% per annum. The loan repayment period is 40 years, of which the first 10 are grace periods.
