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Moldova will receive a 40-million-euro loan from the French Development Agency (AFD) to implement reforms in the energy sector.

Moldova will receive a 40-million-euro loan from the French Development Agency (AFD) to implement reforms in the energy sector.

This is stipulated by a relevant credit line agreement between Moldova and the French Development Agency, which was ratified by the Moldovan parliament. The document itself was signed on October 17 in Chisinau within the Moldova Support Platform. It is planned that the AFD loan will be used to finance the needs of the state budget in order to carry out reforms in the energy infrastructure, energy efficiency and renewable energy sources. The assistance provided will accelerate the transition to green energy in Moldova by promoting energy security and sustainable development in response to climate change, in line with the requirements of EU and Energy Community legislation. Relevant reforms should be carried out based on the Policy Matrix, which includes all actions to be undertaken by Moldova in 2023-2028 - 34 conditions, divided into 6 phases. The signed agreement provides for the financing of the first phase. The loan will have a repayment period of 15 years, including a 5-year grace period. The loan will be repaid semi-annually in 20 equal installments. The interest rate - fixed or floating (Euribor 6 month + margin) - will be determined during negotiations. The commitment fee will be 0.5% of the outstanding amount accrued from the date of signing the agreement. The single commission will be 0.5% of the total loan amount. The loan will be disbursed in one installment. The loan servicing costs will be paid from the state budget. // 09.11.2023 – InfoMarket

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