Moldova will receive a €60 million loan from Agence Française de Développement (AFD - French Development Agency) to promote renewable energy, enhance the sustainability of the railway sector and mitigate the impact of the energy crisis on disadvantaged families. The bill to ratify the credit facility agreement was given two readings by Parliament, IPN reports.

This policy-based budget support is a response to immediate financing needs of Moldova in the context of the Ukraine war, the energy crisis and high inflation. The money will be used to support regulatory reforms that contribute to the diversification of energy resources and to modernize the railway sector.

The loan is repayable in 15 years, with a grace period of five years. The money will be disbursed in one installment. The 20 equal payments on the loan will be semiannual.