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Moldova will sign a loan agreement with the European Union to receive funds from the Reform and Growth Facility for our country

Moldova will sign a loan agreement with the European Union to receive funds from the Reform and Growth Facility for our country

In particular, the Moldovan government approved the signing of this document and granted advisory powers to Finance Minister Victoria Belous and National Bank of Moldova Governor Anca Dragu. According to the Cabinet, the Growth Plan for Moldova, previously approved by the European Union, consists of two components and provides for the allocation of €400 million to our country in a grant and €1.5 billion in loans on very favorable terms. Part of the EU loan will be directed to investment projects, and the other part will be used as budget support for the payment of pensions, benefits, and compensation. The loan has a maturity of 40 years, with the first 10 years being a grace period during which Moldova will not repay anything of the loan. It is planned that the loan agreement for receiving funds from the Reform and Growth Facility for our country will establish specific conditions for the implementation of EU support under the Reform and Growth Mechanism for Moldova. The document will establish the principles of cooperation between the European Commission and Moldova, and its overall objective is the implementation of the Reform Program in Moldova. The implementation of the agreement will contribute to strengthening the rule of law and good governance; supporting the transition to a green and digital economy; strengthening economic and social resilience; and accelerating convergence with the European Union. After signing, the agreement will be submitted to parliament for ratification. As previously reported, in early March, the European Parliament approved a Growth Plan for Moldova with funding of €1.9 billion. The European Union is allocating funds from the Reform and Growth Facility for Moldova for the following purposes: new roads, bridges, and railway infrastructure; energy security—to complete a new power line and start construction of two more which will connect Moldova to the EU power grid; construction of two new well-equipped hospitals in Cahul and Balti; improving access to finance and supporting 25 thousand businesses, including small family businesses, etc. // 07.05.2025 – InfoMarket.

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