According to the Cabinet of Ministers, the agreement provides for the implementation of the Green Energy Transition Program, which supports reforms in the energy sector aimed at energy efficiency and reducing dependence on imports. It concerns the development of renewable energy sources, modernization of infrastructure, introduction of innovations and strengthening consumer protection. For citizens, the implementation of the program will be felt through more energy efficient and cheaper home heating, use of local energy, reduction of pollution and support for vulnerable consumers.
It is planned that the mentioned loan will be granted to Moldova for 15 years, including a grace period of 5 years. It will be repaid twice a year in 20 equal installments. The interest rate will be chosen at the time of disbursement between a fixed interest rate or a floating rate (Euribor 6m + margin of 0.9 p.p.). The commitment fee will be 0.5% of the outstanding balance starting from the date of signing the agreement and the lump sum fee will be 0.5% of the total loan amount. The loan servicing costs will be covered by the state budget.
The credit line agreement implements the provisions of the Memorandum of Understanding signed on June 23, 2023 between the Moldovan government and AFD. This memorandum establishes a general framework for cooperation and sets a roadmap for the implementation of the agreed reforms.
The agreement on the credit line to be obtained now concerns Phase II of this reform program. The first tranche of the program (€40 million) was implemented in 2023 and the second tranche in 2024 (€25 million). Subsequent phases, including the current one, will follow with an annual cycle for 2025-2028.
