Romania lends €150m to Moldova

Romania decided to provide a €150 million loan to Moldova for coping with the economic crisis until the country signs financing agreements with international organizations. The information was made public after the joint meeting of the Governments of Moldova and Romania that took place in Constanta on September 22, IPN reports.



The Romanian Premier Victor Ponta, in a press briefing held together with his Moldovan counterpart Valeriu Strelet, said he would like such joint meetings to take place more often as there are many things that can be dealt with together. The Government of Romania decided to ask Romania’s Parliament to sign an agreement to provide a loan of €150 million repayable in five years to Moldova. Moldova is going through a difficult period and we think it is the duty and in the power of Romania to help it in a difficult moment, until it signs an agreement with international financial organizations. The interest rate is 1.5% a year. Romania neither loses nor gains. It is not a commercial operation, but financial assistance,” stated Victor Ponta.



In the meeting, there was initialed the second additional protocol to provide non-reimbursable financing for projects to interconnect the energy and transport systems. Victor Ponta said they identified another €5 million for the Moldovan nursery schools and this sum will be disbursed immediately after the Romanian side receives projects to build nurseries that weren’t included in the initial list.



The Romanian Prime Minister noted that the SMURD remains the most important and successful project. In Moldova, it is implemented in Balti, but will be extended to Chisinau and the rest of the country. The two officials spoke about the over €80 million provided by the EU for transfrontier projects between the two states. This money could be used to extend the transport networks and to interconnect the energy systems.



Valeriu Strelet said that this year Moldova will receive €60 million of the €150 million loan. “Moldova does not intend to use this money in unproductive areas. We intend to reanimate the suspended investment projects. We appreciate the efforts made to help our country to create new energy supply systems so that we could get rid of the status of hostage of the old systems and the people have an alternative,” he stated, adding that more than 400 nurseries have been repaired in Moldova with the financial assistance provided by Romania earlier.



“We also approve of the fact that Romania became the main commercial partner of Moldova in 2014. The bilateral trade exceeded US$1.2 billion and this upward trend persists in 2015 too. We would like Romania to also become one of the main investors in Moldova, not only a commercial partner,” stated the Premier.



Valeriu Strelet said he suggested holding joint meetings of the Cabinets on a regular basis so as to ascertain and discuss the made progress. The next joint meeting will take place in Moldova. “The closer Moldova is to Romania, the closer it is to the EU,” he noted.