The French Development Agency will allocate a new tranche of 25 million euros to Moldova under the Green Energy Transition Program
In particular, this is envisaged by the draft of the new Agreement on the credit line between Moldova and the French Development Agency "Green Energy Transition Program", the negotiations on which the government intends to approve and grant the authority to negotiate it to the Secretary of State of the Ministry of Finance Ion Gumene. As noted in the published materials of the Ministry of Finance, the loan repayment period will be 15 years, including a grace period of 5 years. The loan must be repaid twice a year in 20 equal payments. The interest rate will be selected at the time of issuance between a fixed interest rate or a floating rate (Euribor 6m + margin of 0.9 percentage points). On June 16, the base rate of Euribor 6m was 2.054%. The commitment fee will be 0.5% of the remaining amount, starting from the date of signing the agreement, and the one-time fee will be 0.5% of the total loan amount. The loan servicing costs will be covered by the state budget. The loan funds will be used to finance the needs of the state budget. The Ministry of Finance notes that the purpose of the aforementioned credit line agreement is to finance the needs of the state budget, as well as to facilitate reforms in the energy sector of Moldova. These reforms are expected to strengthen energy security and advance the process of convergence with EU standards. Targeted interventions are aimed at facilitating the transition to a more sustainable and environmentally friendly energy system by modernizing infrastructure, increasing energy efficiency, developing renewable energy sources, protecting consumers and promoting environmental policies and combating climate change. The credit line agreement implements the provisions of the Memorandum of Understanding signed on 23 June 2023 between the Government of Moldova and the French Development Agency to advance the energy sector towards a green transition in Moldova.The policy reform measures planned under the program are designed to advance and enforce the green transition agenda within the energy sector. They aim to support Moldova’s alignment with European legislation, establish a regulatory environment that encourages further investments in climate action and environmental sustainability, and enhance both renewable energy generation capacity and energy supply security. The Ministry of Finance recalled that on 10 February 2023, the Ministry sent a request to the French Development Agency to consider the possibility of providing a €120 million loan on preferential terms to support the implementation of reforms in the energy and forestry sectors. As a result, on June 23, 2023, the Memorandum of Understanding “Green Reform for Moldova” was signed between the Government of Moldova and the French Development Agency. This memorandum establishes a general framework for cooperation and defines a roadmap for the implementation of the agreed reforms. The document consists of 6 main stages, each with specific objectives, and includes a total of 34 policy reform measures. The agreement on the credit line, which is planned to be received now, concerns Phase II of this reform program. The first tranche of the program (€40 million) was successfully implemented in 2023, paving the way for the approval of the 2nd tranche in 2024 (€25 million), which was disbursed in 2024. Subsequent stages, including the current 3rd stage, will follow an annual cycle for 2025-2028, and the disbursement of funds will be conditional on the implementation of the actions specified in the Memorandum of Understanding, as well as in the draft corresponding loan agreement. The loan agreement, to be concluded with the French Development Agency, is a bilateral intergovernmental agreement. The relevant agreement consists of 18 articles and 15 annexes, which contain provisions concerning the financial terms of the loan, loan management, obligations assumed by the contracting parties, etc. The Ministry of Finance notes that at present, in order to support the state budget, another 5 agreements on a credit line for 180 million euros have been signed between Moldova and the French Development Agency. // 20.06.2025 — InfoMarket
