Moldova will receive a loan of 40 million euros from the French Development Agency to strengthen the forestry sector and a grant of 1.2 million euros to implement the Forestry Reform Program.
This is provided for by the draft ratification of the corresponding loan agreement between Moldova and the French Development Agency, which was signed on March 7 of this year in Paris. As noted by the Ministry of Finance, the loan agreement concluded with the French Development Agency provides for a loan of 40 million euros. The loan repayment period is 15 years, including a grace period of 5 years. The loan will be repaid every six months - January 20 and July 20, in 20 equal payments. The interest rate will be selected at the time of payment: fixed or floating rate (Euribor 6 months + margin 0.9 pp). The commitment fee is 0.5% and is calculated on the outstanding amount calculated from the date of signing the agreement. The one-time commission is 0.5% and is calculated on the total loan amount and will be paid no later than 30 days after the effective date of the loan agreement. The loan will be provided in 2 installments of 20 million euros. Loan servicing costs will be paid from the state budget. The loan proceeds will be used to finance the needs of the state budget. In addition, Moldova will receive a grant for technical support in the amount of 1.2 million euros from the French Development Agency. As previously reported by the InfoMarket agency, the allocated loan and grant funds are intended to finance the needs of the state budget of Moldova for the implementation of reforms in the forestry sector. The Ministry of Environment recalled that the Forestry Reform Program includes 6 general measures to reform policy in the forestry sector, including: the adoption of a new Forest Code; institutional reform in the forestry sector; promoting biodiversity, carbon sequestration and climate change adaptation; promoting sustainable economic development based on forestry; implementation of the National Afforestation Program for 2023-2032; strengthening national capacity in the field of sustainable forest management.// 17.04.2024 — InfoMarket.
