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The EU will allocate €1.5 billion in concessional loans to Moldova as part of the €1.8 billion Growth Plan under the Reform and Growth Facility for 2025-2027

The EU will allocate €1.5 billion in concessional loans to Moldova as part of the €1.8 billion Growth Plan under the Reform and Growth Facility for 2025-2027

This is provided for by a loan agreement between the European Union and Moldova, represented by the Ministry of Finance and the National Bank, on the provision of a Reform and Growth Facility for Moldova. The document itself was signed on May 21, and the Moldovan government has now approved its ratification. On behalf of Moldova, it was signed by Finance Minister Victoria Belous and National Bank of Moldova Governor Anca Dragu. The agreement provides for Moldova to receive a loan of €1.5 billion for 2025-2027, provided on preferential terms. The loan will be disbursed in tranches during 2025-2027, depending on the fulfillment of commitments in the Reform Agenda. Up to 75% of the total loan amount will be provided in the form of budget support, and at least 25% will be used to finance investment projects. The loan will be provided on concessional terms with a maturity of up to 40 years and a grace period of 10 years. The interest rate applicable to each tranche will be determined by the cost at which the European Commission borrows funds on the international financial market. Moldova currently receives loans from the European Union at rates ranging from 0.125% to 3.375% per annum. The loan agreement will enter into force after ratification by the Moldovan parliament, but no later than six months after the date of signing. At the same time, the Ministry of Justice, together with the Ministry of Finance, must issue a legal opinion for it to be considered in force. The agreement does not amend or replace other existing agreements. By mutual agreement, the agreement may be amended in accordance with national legislation. The overall objective of the signed agreement is to support the implementation of Moldova's Reform Program, contributing to: strengthening the rule of law and good governance; transition to a green and digital economy; strengthening economic and social resilience; accelerating rapprochement with the European Union. // 28.05.2025 — InfoMarket

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