Moldova’s Government to Resume the Negotiations on the Russian Loan
Moldova’s Government will resume the negotiations on the draft Agreement between the Government of Moldova and the Government of Russia on granting the Moldovan authorities a financial loan of €200 million. Previously, the Constitutional Court declared unconstitutional the first agreement signed between the two governments.
On July 31, Moldova’s Government approved a decision to resume the negotiations with the Russian Government on granting the Moldovan authorities a €200 million loan.
The leader of the negotiating delegation was appointed Deputy Prime Minister and Minister of Finance, Serghei Pușcuța. He was also empowered to sign the documents relevant to the negotiations in question.
On May 7, the judges at the Constitutional Court declared unconstitutional the Agreement between the Government of Moldova and the Government of Russia on granting the Government of Moldova a state financial loan amounting to €200 million.
The examination lasted over 10 hours and took place in the absence of Judge Eduard Ababei, who requested self-recusal because he is the brother-in-law of Serghei Pușcuța, Minister of Finance.
The draft law for the ratification of the Agreement between the Government of Russia and that of Moldova on granting a state financial loan amounting to €200 million was adopted on April 23, with the vote of 56 Socialist Party and Democratic Party deputies.
The agreement between the Government of Russia and the Government of Moldova on granting a State Financial Loan to the Government of Moldova was signed on April 17 in Moscow by Moldova’s Ambassador to Moscow, Andrei Neguta.
The agreement provided for the disbursement of €200 million during 2020, in two tranches, each of €100 million. The first tranche may be accessed no later than 30 days from the date of entry into force of the Agreement.
According to the agreement, the interest rate for the loan offered is two percent per year. The maturity of the loan is 11 years, with a grace period of about one year. The interest payment will be semi-annual for each tranche.
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