The French Development Agency (AFD) will provide Moldova with a EUR 40 million loan and a EUR 1.2 million grant to strengthen the forestry sector.
In particular, this will be stipulated by the relevant agreement, the start of negotiations on which was approved by the Moldovan government while approving a group of negotiators headed by State Secretary of the Finance Ministry Ion Gumene. According to the Ministry of Finance, the Moldovan government and the French Development Agency (AFD) signed on October 17 in Chisinau within the Moldova Support Platform a Memorandum of Agreement on reforms in the forestry sector, which provides for a EUR 40 million development policy-based loan to Moldova, in two equal installments of EUR 20 million each: the first tranche in 2024, the second in 2025. It is planned that the loan will be disbursed for 15 years, with 5-year repayment vacations. The interest rate will be chosen at the time of repayment between a fixed interest rate or a floating rate (Euribor 6 months + margin). The commitment fee is 0.5% of the unpaid amount calculated from the date of signing the agreement. The one-time commission will amount to 0.5%. In addition, Moldova will receive a grant of EUR 1.2 million from AFD for technical support. Moldova will have to gradually implement the roadmap, which describes 20 concrete reform measures proposed within the AFD financing program. The purpose of the loan agreement with AFD is to finance the needs of the state budget in order to implement reforms in the forestry sector and its modernization, in compliance with all EU regulations, as well as Moldova's commitments undertaken within the framework of international agreements. The measures were defined after the first assessment report of the Moldovan forest sector, developed with the participation of Moldsilva Agency and its regional representatives, scientific and university institutions, as well as local specialists. The implementation of the 20 measures will contribute to achieving the objectives set in the National Program of Forest Expansion and Reforestation for 2023-2032 and in the Action Plan for its implementation for 2023-2027, including action No. 6 of the Moldovan Government's National Plan "Building a European Moldova". // 13.12.2023 – InfoMarket
