Moldova will receive a grant of 1.2 million euros from France to implement the Forestry Reform Program.
This is stipulated by a trilateral Memorandum of Understanding between the Moldovan Environment Ministry, the Forest Deposit and Consignments Fund and the French Development Agency, which was signed by the parties in Chisinau on March 15. The Environment Ministry recalled that the Forestry Reform Program includes 6 general measures to reform policies in the forestry sector: adoption of a new Forest Code; institutional reform in the forestry sector; promotion of biodiversity, carbon sequestration and adaptation to climate change; promotion of sustainable economic development based on forestry; implementation of the National Afforestation Program for 2023-2032; strengthening national capacities for sustainable forest management. As previously reported, Moldova will receive a 40-million-euro loan from the French Development Agency to strengthen the forestry sector. This is stipulated by a relevant loan agreement, which the sides signed in Paris on March 7. The funds allocated by the French partners will help Moldova to plant forests, including the purchase of necessary equipment and machinery, as well as to reform the forest fund according to the European standards. The 40-million-euro loan will be allocated to Moldova in two tranches of 20 million euros each in 2024-2025. The loan will be granted for 15 years, and Moldova will repay it in 20 equal tranches every six months. The interest rate on the loan will be determined at the moment of money transfer (fixed rate or floating (Euribor 6m+margin). The commission will be 0.5% of the outstanding amount calculated at the date of signing the agreement. The one-off commission will be 0.5% of the loan amount and must be paid within 30 days of the agreement start date. // 18.03.2024 - InfoMarket.
