Moldova’s Cabinet of Ministers has approved a draft ratification agreement with the EBRD on a 300 million euros loan for the implementation of the "Security of Natural Gas Supply" project.
The document was signed on June 23 and envisages allocation of 300 million euros to Moldova for implementation of the project in two tranches. The first 100 million euros tranche will be used to buy gas and build up gas reserves this summer, and the second 200 million euros will be spent on emergency gas purchases, if necessary, in 2022-2025. At the same time, the second, "emergency" tranche will not be allocated by the EBRD at the stage of signing and ratifying the loan agreement, but will be provided upon request, in case of emergencies. Prime Minister Natalia Gavrilita reminded that last October, Moldova did not have a sufficient amount of gas from Gazprom, and therefore, the authorities decided to create state gas reserves for the future, so that the state has at least a two-month reserve of gas to supply consumers in winter, which was stipulated by amendments to the Law on Natural Gas. "We see a lot of volatility in prices and supplies. We are preparing for different possible scenarios, and it is important for us to have different plans and have the means to act if necessary," Prime Minister said. The EBRD loan will be granted at a floating interest rate of EURIBOR for 6 months, with a minimum zero interest rate + a margin of 1% per year. The single commission will be 1% of the maximum loan amount. Commitment fee: 0.5% per annum on the total outstanding loan amount in the first tranche. In the case of a second tranche loan, a commitment fee will also be charged. Commitment will be of 0.5% per annum, but only after receiving written confirmation from the EBRD that the second tranche has been disbursed. The borrower will repay the first tranche by July 1, 2025. The second tranche, for emergencies, will be repaid starting from the period from which the EBRD confirms the allocation of the corresponding tranche and until October 1, 2025. As InfoMarket agency earlier reported, the European Bank for Reconstruction and Development (EBRD) has informed earlier on prequalification of companies for bidding for EBRD credit resources for the sale of natural gas to Moldova. // 29.06.2022 – InfoMarket
