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 The Moldovan government approved the start of negotiations and the signing of an agreement with the EU on macro-financial assistance for Moldova in the amount of 100 million euros

The Moldovan government approved the start of negotiations and the signing of an agreement with the EU on macro-financial assistance for Moldova in the amount of 100 million euros

According to the decision of the Cabinet of Ministers, the official delegation led by Deputy Prime Minister and Minister of Finance Sergiu Puscuta received the appropriate authority to negotiate. The authority to sign the relevant loan agreement was granted to Sergiu Puscuta and the President of the National Bank of Moldova, Octavian Armasu. Vice Prime Minister and Minister of Finance noted that the agreement on EU macro-financial assistance for Moldova provides for the provision of a soft loan in the amount of 100 million euros, which will be allocated to the country in two equal parts - 50 million euros for the period 2020–2021. At the same time, the allocation of the first tranche is due only to the signing of a special Memorandum of Agreement, and the second tranche to progress in the implementation of its provisions. In particular, to receive the second tranche, it will be necessary to fulfill six conditions, some of which are taken from the conditions for the provision of the third tranche under the current macro-financial assistance program, which expires this summer. The loan maturity under the new macro-financial assistance will be 15 years with the same grace period. The loan will be repaid in one tranche. The interest rate on the loan depends on the cost at which the European Commission will borrow money in the international financial market. Interest will be paid by Moldova annually. The purpose of the macro-financial assistance provided by the European Union is to solve the problems with external financing of the country, cover budgetary needs, strengthen the situation with foreign exchange reserves and provide support to Moldova in eliminating external vulnerabilities. At the same time, EU assistance complements the resources provided to the country by international financial institutions and bilateral lenders in support of economic stabilization and government reform programs. //08.07.2020 — InfoMarket.

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