The French Development Agency will provide Moldova with a loan of 60 million euros. The need for a loan arose in connection with the consequences of Russia’s actions in Ukraine, the energy crisis and inflation.
At the meeting, on November 9, the members of the Committee on Foreign Policy and European Integration decided to propose for consideration at the plenary session of the Parliament the ratification of the Agreement on the Credit Mechanism between Moldova and the French Development Agency.
The money provided will be used to strengthen social safety net programs, mitigate the impact of rising gas prices and implement reforms to develop renewable energy sources. The money will also be directed to the modernization of railway transport.
The loan has a maturity of 15 years, including a five-year grace period. It will be repaid twice a year in 20 equal installments. The loan will be paid in one installment, the deadline is October 13, 2023.