Moldova has ratified an agreement with the EU to receive €1.5 billion in concessional loans as part of a €1.9 billion Growth Plan
Specifically, on Thursday, members of parliament approved in two readings a loan agreement between the European Union and Moldova, represented by the Ministry of Finance and the National Bank, on the provision of a Reform and Growth Facility for Moldova. The document itself was signed on May 21. The agreement provides for Moldova to receive a €1.5 billion loan for 2025-2027, provided on concessional terms. The loan will be disbursed in semi-annual tranches in 2025-2027, subject to the fulfillment of the commitments set out in the reform program. Up to 75% of the total loan amount will be provided as budget support, and at least 25% will be used to finance investment projects. The loan will be provided on concessional terms with a maturity of up to 40 years and a grace period of 10 years. The interest rate on each tranche will depend on the cost of borrowing by the European Commission on the international financial market. Moldova currently receives loans from the European Union at rates ranging from 0.125% to 3.375% per annum. The loan agreement will enter into force after ratification by the Moldovan parliament. Finance Minister Victoria Belous noted that the overall objective of the agreement is to support a reform program aimed at developing business and stimulating industry, modernizing transport and digital infrastructure, modernizing education, health care, and social services, as well as energy security and efficiency, strengthening the capacity of state authorities and the rule of law. This involves supporting the implementation of Moldova’s Reform Program, which contributes to: strengthening the rule of law and good governance; transitioning to a green and digital economy; strengthening economic and social resilience; and accelerating rapprochement with the European Union. // 29.05.2025 — InfoMarket
