The Republic of Moldova borrows from Canada $120 million to finance the needs of the state budget and to supplement the World Bank’s program to support the country’s resilience. The bill to ratify the loan facility agreement was given a first reading by the Parliament, IPN reports.

The loan will be disbursed in two installments. It is repayable in 10 years, with a grace period of three years. The repayment must be made annually, and the interest rate is fixed, equal to the rate of the loans provided by the Government of Canada. On September 5, it was 3.01%.

The loan agreement was signed on September 6, 2024. The money will be provided through the Global Affairs Canada and will be used to build the resilience of households and refugees, promote sustainable economic growth, increase competition and growth generated by the private sector and support transition to green energy.