Moldova will receive a 40-million-euro loan and a 1.2-million-euro grant from the French Development Agency to strengthen and reform the forestry sector.
This is stipulated by the relevant loan agreement between Moldova and the French Development Agency, ratified by Parliament and signed on March 7 in Paris. The Finance Ministry said that the loan agreement signed with the French Development Agency provides for a loan of 40 million euros. Its repayment period is 15 years, including a grace period of 5 years. The loan will be repaid semi-annually, on January 20 and July 20, in 20 equal installments. The interest rate will be chosen at the time of repayment: fixed interest rate or floating rate (Euribor 6M + margin of 0.9 p.p.). The commitment fee is 0.5% and is calculated on the unpaid amount calculated from the date of signing the agreement. The lump sum fee 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 two installments of 20 million euros each. The costs of servicing this loan will be paid from the state budget. The financial resources of this loan will be used to finance the needs of the state budget. Also, Moldova will receive a 1.2-million-euro technical assistance grant from the French Development Agency. InfoMarket reported earlier that, the loan and grant funds are meant to finance the needs of the Moldovan state budget for the implementation of reforms in the forestry sector. The Environment Ministry recalled that the Forestry Reform Program includes 6 general measures for reforming policies in the forestry sector: adoption of the 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 the national capacity for sustainable forest management. // 17.05.2024 - InfoMarket.
