The Government of Moldova approved an increase in the amount of external state loans allocated by the IMF to finance the budget from 314.3 million to 471.4 million SDRs.
In particular, the Cabinet of Ministers approved draft laws providing for an increase in the amount of external state loans allocated by the International Monetary Fund through the ECF (Extended Credit Facility) and EFF (Extended Financing Facility) lending mechanisms to finance the state budget by 157.1 million special drawing rights (SDRs) - from 314.3 million to 471.4 million SDRs. The Ministry of Finance recalled that the amendments are being made due to the fact that on May 11 the IMF Executive Board approved a general increase in financial assistance to Moldova under the current Economic Reform Program by 194.26 million SDRs (approximately $260.11 million) - up to 594.3 million SDR (approximately $795.72 million). At the same time, the amount of loans to support the state budget was increased from 314.3 million to 471.4 million SDRs. It was agreed that, in particular, 169.5 million SDRs would be received under the ECF mechanism to finance the needs of the budget, or 64.8 million SDRs more than previously planned (the previous amount was 104.7 million SDRs). Herewith, 301.9 million SDRs will be allocated under the EFF mechanism, which is 92.3 million SDRs more (the previous amount was 209.6 million SDRs). Meanwhile, funds within the framework of the EFF will be returned in 12 equal tranches after 4.5 years from each payment made from the loan account. The loan repayment term is 10 years. A floating interest rate will be applied, which as of May 9 this year was 1.498% per annum. The service fee will be 0.5% of the amount paid, the commitment fee - 0.3%. Thus, under the ECF mechanism, funds will be returned in 10 equal tranches after 5.5 years from each payment made from the loan account. The interest rate on the loan in question will be set every 2 years and will be 0% until 2023.// 18.05.2022- InfoMarket.
