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Moldova initiates negotiations with the French Development Agency for a 60 million euro concessional loan.

Moldova initiates negotiations with the French Development Agency for a 60 million euro concessional loan.

Moldovan government approved a resolution to start negotiations at a meeting on Wednesday. Also, the composition of the negotiation group, headed by Finance Minister Dumitru Budianschi, has been approved; it will include state secretaries, heads and specialists of ministries. It should be noted that the concessional loan from the French Agency will be granted in parallel with World Bank Group financing, as part of a package of coordinated financial assistance to Moldova from international partners in response to the current socio-economic emergency in Moldova. French Development Agency resources will be used to adapt the new Railway Code and implement the railway sector reform; define an investment plan and measures to rehabilitate the railway sector, taking into account risks related to climate changes; approve the regulatory reform for development of the renewable energy market; consolidate social protection programs to overcome the crisis caused by rising gas prices and future shocks for vulnerable categories of people. According to the preliminary agreements, the loan will be granted for 15 years, with a 5-year grace period. The interest rate on the loan will be provided according to the scheme EURIBOR for 6 months + margin, but the exact terms will be determined in the course of negotiations. The commitment fee will be 0.5% per annum on the total outstanding loan amount, after 180 days from the signing of the agreement. The single commission will be 0.5% of the total loan amount. // 07.07.2022 – InfoMarket

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